HLS Helesi

 

TIDMHLS TIDMSTT 
 
RNS Number : 1998I 
Helesi PLC 
08 March 2010 
 

                                   Helesi PLC 
                          ("Helesi" or the "Company") 
 
        Sale of Helesi UK Ltd business and certain assets to Straight Plc 
 
Helesi Plc (AIM: HLS), the Greece based waste management products manufacturer 
and services supplier,  announces that it entered in an agreement regarding the 
sale of the business and part of  the assets of Helesi UK Ltd, which constitute 
Helesi's UK based two-wheeled bin manufacturing operations, to Straight Plc 
("Straight"), Europe's leading supplier of recycling container solutions. 
 
The consideration payable by Straight is a total of GBP1.6 million in cash and 
consists of an initial payment of GBP0.45 million on exchange, a further GBP0.45 
million on completion with the balance paid in 10 equal monthly instalments 
commencing on 30th April 2010. For the six months to 30 June 2009, Helesi plc's 
UK business generated revenues of approximately EUR4.4m and profit before finance 
charges of EUR0.3m.  The UK business generated GBP6.5 million,of revenues, and 
the loss before tax was GBP1.38 million for the year 2008.. 
 
 The proceeds of the sale will be used for the reduction of the group's short 
term debt obligations. 
 
In addition Helesi [SA, a wholly owned subsidiary of Helesi] has entered into a 
strategic alliance with Straight in the UK and Ireland under which Straight will 
pay Helesi [SA] an ongoing process fee for the use of its brand on jointly 
branded products, Straight will also become the exclusive UK and Irish 
distributor and licensee for other Helesi products including plastic 4-wheeled 
bins and will have the right of first refusal to import and distribute any new 
products developed by Helesi. Both companies expect to work together on the 
development of new products - utilising Straight's innovative expertise and 
Helesi's technical know how. 
 
In its interim results for the six months to 30 June 2009, which were announced 
on 30 September 2009, Helesi reported that it had ceased production at its UK 
facilities.  Helesi has entered into this disposal as part of an ongoing cost 
reduction strategy, which will allow Helesi to reduce operating expenses and 
relocate funding to new markets. Helesi has additional available capacity in its 
new facilities in Nothern Greece and Italy which will substitute for the 
capacity of the UK manufacturing operations being disposed of. 
 
Sakis Andrianopoulos, Chief Executive said: 
 
" I am very pleased to announce the disposal of our UK manufacturing assets to 
our long term partner in the UK, Straight Plc. The new arrangements put in place 
by the strategic alliance will rationalise our UK activities, whilst enabling us 
to concentrate our manufacturing operations into new modern facilities elsewhere 
in Europe. This transaction represents a natural development of our European 
growth strategy and we look forward to working with Straight to develop our 
activities in the UK market." 
 
                                    - ends - 
 
For further information please visit www.helesi.com or contact: 
 
+---------------------------------------+--------------------------+ 
| Helesi PLC                            | + 30 210 60 48 393-4     | 
+---------------------------------------+--------------------------+ 
| Sakis Andrianopoulos, Chief           |                          | 
| Executive,                            |                          | 
+---------------------------------------+--------------------------+ 
| Ioannis Tolias, Finance Director      | itolias@helesi.com       | 
+---------------------------------------+--------------------------+ 
|                                       |                          | 
+---------------------------------------+--------------------------+ 
| Panmure Gordon                        | +44 (0) 20 7459 3600     | 
+---------------------------------------+--------------------------+ 
| Andrew Godber                         |                          | 
+---------------------------------------+--------------------------+ 
|                                       |                          | 
+---------------------------------------+--------------------------+ 
| Tavistock Communications              | + 44 (0) 20 7920         | 
|                                       | 3150                     | 
+---------------------------------------+--------------------------+ 
| Simon Hudson                          | shudson@tavistock.co.uk  | 
+---------------------------------------+--------------------------+ 
| Gemma Bradley                         | gbradley@tavistock.co.uk | 
+---------------------------------------+--------------------------+ 
 
About Helesi 
 
Helesi is a specialist designer and manufacturer of plastic products mainly for 
use in the waste management industry and a provider of waste management 
services. 
 
Its activities comprise: 
-           the design and manufacture of plastic waste containers including 2 
and 4 wheeled bins, pre-sorting bins and the full range of EN 840 standard 
containers; 
-           the provision of waste management services (waste collection, 
container washing, street sweeping and recyclable materials collection). 
-           the design and manufacture of material handling plastic products 
(pallet boxes and crates) for agricultural, domestic and industrial use and 
other injection-moulding plastic products such as fish crates, and stadium 
seats; 
-           the supply of special vehicles and equipment for the waste 
management industry; and 
-           the recycling of used tyres 
 
Demand for Helesi's products and services in developed waste management markets 
is driven by increasingly stringent regulation on waste management and 
recycling. Growing demand is also being experienced in developing countries, 
which are looking to establish centralised and orderly waste management 
services. Helesi has developed a strong market position in both the developed 
waste management markets of Western Europe as well as in the high growth markets 
of South-eastern Europe, the Mediterranean and the Middle East. With sales in 52 
countries, the Company derives more than 70% of its waste container revenue 
internationally. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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