SOA Stonemartin

    RNS Number : 9846F
  Stonemartin PLC
  16 October 2008
   

    AGM STATEMENT

    Stonemartin plc
    ('Stonemartin' or 'the Company')

    Richard Mead, Chairman of Stonemartin plc, made the following comments at the Company's Annual General Meeting today.  

    Introduction

    In my statement on 12 September 2008 in the Annual Report and Accounts, I referred to the year ended 31 March 2008 being 'the end of an
era for the Company'. This referred to the termination of the management agreements in three of the four buildings operated by the Group. I
reported that these proposals had resulted in the Company completing a Settlement Agreement, on 17 April 2008, which produced a compensation
payment in cash of �7.0 million, before expenses. 

    I also advised shareholders that, following the completion of the Settlement Agreement, the Board had undertaken a review of the
strategic options open to the Group and had concluded that the interests of the shareholders would be best served by returning all available
funds to them.

    After discussions with a number of interested parties, the Board is now in negotiations with one party for the sale of the main trading
subsidiary, Stonemartin Corporate Centres Limited and hopes to conclude an agreement, subject to shareholder approval, before the end of the
year. If the proposed transaction is successfully completed, the Board will take immediate steps to return cash to shareholders as soon as
possible. However shareholders should note that there can be no guarantee that a sale of the trading subsidiary will be concluded or that
there will be any return of cash to shareholders in the near future.    

    Current Trading

    The global banking and financial markets, in which many of our customers operate, are now experiencing their sternest challenge for many
decades and the impact is likely to be felt throughout the economy. 

    A natural by-product of this situation is reduced demand and increasing levels of supply across all grades of space. Many of those who
had planned to take new or additional space will put their requirements, particularly those which were expected to be met by relatively
long-term conventional leases, on hold until conditions improve.

    The managed and serviced office sector is at an interesting crossroad. A consequence of current market conditions is that those
companies which have to move for structural or corporate reasons see the obvious attraction of short-term leases that require little or no
capital expenditure. 

    In recent weeks, we have seen a drift in the level of demand, albeit there is still enough serious interest to remain cautiously
up-beat. Workstation rates remain steady at the moment, but may come under pressure if the conventional letting market deteriorates.

    To date a very small number of occupiers within New Broad Street House have either been unable to continue operating or chosen not to
renew their leases. Actual occupancy has remained broadly in line with budget although inevitably, given current market conditions there can
be no guarantee that this will continue. We will continue to take a flexible approach to maintaining occupancy levels at appropriate
workstation rates. The forward order book for conferencing remains strong. 




    For further information, please contact:

 Richard Mead - Chairman/Graham Ede -         Tel: 020 7194 7500
 Joint Managing Director, Stonemartin plc
 Reg Hoare/Miranda Good, Smithfield           Tel: 020 7360 4900
 Jeff Keating/Simon Brown, Teathers Limited   Tel: 020 7426 9000


    For more information on Stonemartin plc, please visit http://www.stonemartin.co.uk.



This information is provided by RNS
The company news service from the London Stock Exchange
 
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