News: Oak hit by YES! Project termination
Oak Holdings has posted a loss before tax of £11.48m for the year ended 31 October 2010 as a result of failing to prevent the termination of the developer agreement for the YES! Project in Rotherham.
Rotherham Council (RMBC) terminated the development agreement relating to the YES! Project between RMBC, Oak Ventures Limited and Oak Holdings plc in January.
The delayed £350m proposal was set to create the largest undercover leisure based scheme in Europe adjacent to Rother Valley Country Park in Rotherham.
Oak's latest financial report states how it "had been impossible to formalise funding or to secure binding pre-lets with key tenants and, we understand, RMBC took this delay in securing formal agreements as a material lack of progress."
Oak gave a joint presentation to RMBC with a credible joint venture partner in an attempt to extend the development agreement.
The group's financial loss was struck after providing against the whole of the goodwill previously carried, an impairment charge of £10,828,446, following the termination of the development agreement relating to the YES! Project. £250,000 that the group spent on gaining updated outline planning approval has also been written off.
At the year end the company had negligible cash and nearly £2m of creditors. Active discussions are underway with creditors with a view to securing the group's
position. Oak is also in active discussions with a third party for a significant equity or equity related investment and hopes to be able to announce further details of this in the coming weeks.
Commenting on the results, Mike Woodcock, chairman of Oak Holdings, said: "This is not the report I imagined writing when I became chairman in the middle of 2010. The Yes! Project seems over although we continue to strive to achieve value from it and the adjacent freehold land we own. We are now focusing on developing a successful leisure business and are determined to achieve value for shareholders."
Oak continues to successfully manage the Rother Valley Country Park in accordance with the interim management agreement. Oak continues to own the valuable freehold of the A57 land adjacent to the site of the Pithouse West site.
Oak Holdings website
Rotherham Council (RMBC) terminated the development agreement relating to the YES! Project between RMBC, Oak Ventures Limited and Oak Holdings plc in January.
The delayed £350m proposal was set to create the largest undercover leisure based scheme in Europe adjacent to Rother Valley Country Park in Rotherham.
Oak's latest financial report states how it "had been impossible to formalise funding or to secure binding pre-lets with key tenants and, we understand, RMBC took this delay in securing formal agreements as a material lack of progress."
Oak gave a joint presentation to RMBC with a credible joint venture partner in an attempt to extend the development agreement.
The group's financial loss was struck after providing against the whole of the goodwill previously carried, an impairment charge of £10,828,446, following the termination of the development agreement relating to the YES! Project. £250,000 that the group spent on gaining updated outline planning approval has also been written off.
At the year end the company had negligible cash and nearly £2m of creditors. Active discussions are underway with creditors with a view to securing the group's
position. Oak is also in active discussions with a third party for a significant equity or equity related investment and hopes to be able to announce further details of this in the coming weeks.
Commenting on the results, Mike Woodcock, chairman of Oak Holdings, said: "This is not the report I imagined writing when I became chairman in the middle of 2010. The Yes! Project seems over although we continue to strive to achieve value from it and the adjacent freehold land we own. We are now focusing on developing a successful leisure business and are determined to achieve value for shareholders."
Oak continues to successfully manage the Rother Valley Country Park in accordance with the interim management agreement. Oak continues to own the valuable freehold of the A57 land adjacent to the site of the Pithouse West site.
Oak Holdings website
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