REG - Marks Electrical Grp - Related Party Transaction

Marks ElectricalAnnouncement

01/04/2022 07:00

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RNS Number : 8670G  Marks Electrical Group plc  01 April 2022

1 April 2022

Marks Electrical Group plc

("Marks Electrical" or "Company")

Related Party Transaction

The Company confirms that as part of the completion of its financial full
year, its wholly owned subsidiary, Marks Electrical Limited ("MEL") settled a
net cash payment of £628,510 on 31 March 2022, to Mark Smithson (CEO) in
relation to previously disclosed historical arrangements. The payment is
subject to PAYE and NIC taxes resulting in a total outflow of £1.35m.

This process is part of a year-end settlement and brings to a close the
aforementioned historical arrangements as outlined in the Company's Admission
Document at the time of its IPO. There is no financial impact on the Company
or its current trading given that these balances were already provided for on
the Balance Sheet. Further details of this arrangement are described in the
Admission Document, dated 5 November 2021.

Following this net cash payment, the Company has a closing cash balance on 31
March 2022 of over £3.0m.

The Group looks forward to providing an update on the progress it has made
during the financial year ended 31 March 2022 with the release of its
pre-close full year trading update on 12 April 2022.

Related party transactions

Given Mark Smithson's position as a Director and substantial shareholder of
the Company, the settlement to Mark Smithson is deemed to be a related party
transaction pursuant to AIM Rule 13 of the AIM Rule for Companies

Under the AIM Rules, where a company enters into a related party transaction,
the independent directors of that company are required, after consulting with
the company's nominated adviser, to state whether, in their opinion, the
transaction is fair and reasonable in so far as its shareholders are
concerned.

The Independent Directors, being Marnie Millard, David Wilkinson and Aly
Fadil, have considered the terms of the settlement and having consulted with
Panmure Gordon, the Company's nominated adviser, the Independent Directors of
the Company believe that the terms of the settlement are fair and reasonable
in so far as the Company's shareholders are concerned.

 

Enquiries:

 Marks Electrical Group plc                            Via Dentons Global Advisors:

                                                       Tel: +44 (0) 7510 385 554

 Mark Smithson, CEO

 Josh Egan, CFO

 Dentons Global Advisors (Financial PR)                markselectrical@dentonsglobaladvisors.com
                                                       (mailto:markselectrical@dentonsglobaladvisors.com)

                                                       Tel: +44 (0) 7510 385 554
 James Styles
 Fern Duncan
 Panmure Gordan (NOMAD and Broker)                     +44 (0) 207 886 2500
 Oliver Cardigan, Ailsa Macmaster (Corporate Finance)
 Erik Anderson (Corporate Broking)

 

 

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