Publication of Annual Report, Notice of Annual General Meeting and Results - Regulatory Release
The Directors of Marwyn Materials Limited are pleased to announce that the Annual Report and Accounts for the period ended 31 December 2009 and the Notice of the Annual General Meeting have today been posted to all shareholders.
Copies of the Annual Report and Accounts will be available, free of charge, for a period of one month at the Company's registered office at Elizabeth House, 9 Castle Street, St Helier, Jersey, JE2 3RT.
The Annual General Meeting will be held at Elizabeth House, 9 Castle Street, St Helier, Jersey, JE2 3RT on Monday, 26 April 2010 at 2 p.m. Details of the results of Marwyn Materials Limited for the period from incorporation to 31 December 2009 are given below.
Acquisition strategy
Marwyn Materials Limited was established in June 2008 to acquire controlling interests in building materials businesses, both listed and unquoted, in the UK, Europe and US, with a view to creating shareholder value through market consolidation. This continued to be the Group's strategy throughout the period under review.
During the course of the year the economic situation continued to deteriorate and the demand for building materials reflected this, with most companies reporting sharply lower earnings. A number of potential opportunities in the UK and in continental Europe have been examined, but the Board concluded that none were available on satisfactory terms and consequently, as at the year-end, no transactions had been concluded. The Board believes that vendor expectations are becoming increasingly realistic and a number of interesting opportunities continue to remain available; however, only transactions where substantial value can be created for shareholders will be pursued.
The rules require that where an AIM-listed company is an investing company, shareholder approval for its investment strategy must be sought on an annual basis. The Board therefore proposes to seek approval for the Group to continue its current acquisition strategy at the forthcoming annual general meeting on 26 April 2010. The Board unanimously recommends that shareholders approve the appropriate resolution.
Results
The Group's loss after taxation for the year to 31 December 2009 was £829,056 (2008: £742,495) and was in line with our planned level of expenditure.
Costs incurred to date include £94,650 (2008: £0.49m) in relation to due diligence carried out on acquisition targets by the Group's professional advisers. We continue to monitor and control costs carefully, with as much initial work as possible carried out by the management team, and we remain rigorous in our approach to ensure that no unnecessary costs are incurred.
As at 31 December 2009, the Group had net cash balances totalling £11.9m (2008: £12.8m).
Dividends
It is the Board's policy that prior to making the first acquisition, no dividends will be paid. Following the first acquisition, subject to availability of distributable reserves, dividends will be paid to shareholders when the directors believe it is appropriate and prudent to do so. However, the main focus of the Group will be on delivering capital growth for shareholders.
Outlook
The Group continues to pursue its stated acquisition strategy. We anticipate that 2010 will present numerous further acquisition opportunities in our target sector. Certain of these are already under review.
We believe that Marwyn Materials, with its strong and experienced management team, is well placed to exploit attractive opportunities in the year ahead.
Enquiries:
Marwyn Materials Limited
Peter Tom 020 7389 6800
Simon Vivian 020 7389 6800
Cenkos Securities plc
Nicholas Wells 020 7397 8900
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