REG - Northern Bear Plc - Settlement of Legal Claim

Northern BearAnnouncement

08/07/2022 07:00

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RNS Number : 7688R  Northern Bear Plc  08 July 2022

 

8 July 2022

Northern Bear plc

("Northern Bear" or the "Company")

 

Settlement of Legal Claim

 

The board of directors of Northern Bear plc (the "Board") is pleased to
announce that a settlement of £0.6 million has been agreed in respect of a
legal claim against one of the Company's subsidiaries, Springs Roofing Limited
("Springs"), by Engie Regeneration (FHM) Limited ("Engie").  There are no
other pending legal claims against the Group or its subsidiaries, and we are
not aware of any matter that could lead to a material legal claim.

Springs received notice of formal court proceedings in the sum of £1.9
million plus costs in December 2021.  The claim related to roofing work
undertaken over a two-year period from April 2009 to March 2011 on eight
separate care home properties.

Engie had experienced performance issues with various aspects of the
buildings, including their roof coverings, and subsequently employed Springs
to re-roof all eight properties at normal commercial rates.  Springs'
directors believe the performance issues were caused by problems with the
design of the buildings for which Springs had no responsibility.  The
re-roofing work was carried out to a different specification to the original
contract with different materials being used.

Engie subsequently made a claim under its insurance policy in respect of the
rectification work.  Engie, in conjunction with its insurers, made a claim
against Springs and the conduct of that claim was subrogated to its
insurers.  The Springs directors believe that the claim was without merit.
This position was supported by comprehensive third party technical expert and
legal advice.

In reaching the agreed settlement set out above, the Board and the Springs
directors considered, in conjunction with its legal advisers, the management
time likely to be involved, the future legal costs which would be incurred in
defending the claim, including a sizeable sum which would have been
irrecoverable should Springs have successfully defended the claim, and the
commercial risk of any matter of litigation.

Springs and Northern Bear's other subsidiaries retain excellent commercial
relationships with Engie's regional and national management team. As such,
Engie continues to be an important and valued customer for the Group.

The settlement of £0.6m, which can be satisfied from the Company's existing
resources, will be recorded as an exceptional item in the Group's annual
results to 31 March 2022, which are expected to be released in the week
commencing 18 July 2022.

 

For further information, please contact:

 Northern Bear PLC                                     +44 (0) 166 182 0369

 Jeff Baryshnik - Non-Executive Chairman

 Tom Hayes - Finance Director

 Strand Hanson Limited (Nominated Adviser and Broker)  +44 (0) 20 7409 3494

 James Harris

 James Bellman

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018 (as amended).

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