Monday, October 24, 2011

News: Oak cut by council


Oak Holdings plc has been temporarily suspended from the AIM stock exchange after Rotherham Metropolitan Borough Council terminated the short term lease and associated management agreement for Rother Valley Country Park.

Oak took over the management of the well visited park as part of the developer agreement for the proposed £350m YES! Project on the adjacent Pithouse West site.

The developer agreement was terminated by the council in January after Oak made a material lack of progress on what was to be the largest undercover leisure based scheme in Europe.

The management of the park is set to be brought back under the direct control of the council.

Running the park generated the majority of the loss-making group's turnover and as a result of the termination, the board considered it appropriate to request suspension of the company's shares pending clarification on what affect this will have of the group's assets.

Oak has substantial assets located at the park such as a miniature railway and the board is considering its position in relation to these. Oak also continues to own the valuable freehold of the A57 land adjacent to the site of the Pithouse West site.

In a half yearly report in July, the company posted a pre-tax loss of £209,000 for the six months to the end of April, compared to a £131,000 loss in the same period last year.

Substantial overhead cuts were achieved and a number of directors left the company including Steve Lewis who resigned as chief executive in March.

Since the termination of the developer agreement, the council has selected new preferred developers for the site who intend to create a unique culture and leisure development based on the "Visions of China."

Oak Holdings website
Rother Valley Country Park website



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