14 JULY 2006
Simon Bennett, Non Executive Chairman of Billam plc ("Billam" or "the Company"), will make the following statement at today's Annual General Meeting (AGM):
"Shareholders will note from the accounts for the year ended 31 December 2005 that Victor Beamish is not standing for re-election as director and Chairman of the Company and I have been requested to take this position.
"I am pleased to report that following the EGM held on 24 March 2006, an agreement has been reached with our former Chief Executive, Angus Forrest whereby he will work, on the Company's behalf, through his notice period of 12 months commencing from 1 May 2006. Angus, who is Billam's largest creditor, is owed over £500,000 of unpaid remuneration and loans as disclosed in the Company's accounts. The Company has agreed to settle the outstanding amount, partly in ordinary shares of 20p each to be issued at 30p per share, and the balance in cash over two years.
"Victor Beamish is also owed £30,000 and an agreement has also been reached with him to settle the outstanding amount, partly in ordinary shares of 20p each to be issued at 30p per share and the balance over 3 months.
"Consequently, application will be made for 137,168 new ordinary shares arising from the settlement with Angus and Victor to be admitted to trading on AIM. These shares will rank pari passu with the existing ordinary shares of the Company and dealings are expected to commence on 19 July 2006.
"Since the EGM the Board has been reviewing the Company's existing portfolio of investments. Following this review we have taken steps to liquidate Billam's holdings in both Sosei and Inaplex. The Board is also arranging meetings with the executive managements of some of the other companies in which the Company has a significant stake, before making any further decisions. In the meantime, the Company is considering other investment opportunities (which the Board believes will improve the Company's financial performance) and is seeking shareholders' approval to change Billam's investment strategy.
"The Board is also continuing to review the Company's overhead base and significant reductions are already being made in a number of areas.
Your Board is confident at improving the Company's performance and looks forward to reporting progress over the next year."
Bishopsgate Communications 020 7430 1600 Nick Rome Fran Read
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