Stadco Automotive group is in prime position to take advantage of increases in production as economic recovery continues, with the establishment of an entirely automotive-focused parent company, new banking facilities secured until mid-2012 and transfer of liability for the group's pension scheme, which together will return the UK business to acceptable profit levels during 2011.

Since early 2009, Stadco's parent company, Acertec Ltd, has been involved in a restructuring and cost-reduction exercise. Initially this involved de-listing from AIM and the disposal of all non-automotive businesses. De-listing was completed in June 2009 and, save for a few residual assets, all the construction products businesses have now been sold. As a result, Stadco is now a solely automotive-focused business. The remaining key elements of restructuring have now been put in place.

Ownership of all group companies has passed to Stadco Automotive Ltd, a new company that has been established as part of the restructuring process. Acertec Ltd, the former parent company, will own 10% of the new Stadco Automotive Ltd group.

The remaining shares in Stadco Automotive will be owned by the banks, the Pension Protection Fund and the group's management. The Pension Protection Fund will take on the liability for the group's defined benefit pension schemes. This process has been agreed by the banks, the shareholders and the trustees of the pension schemes.

In addition, the Stadco Automotive group has arranged banking facilities until mid-2012, sufficient to fund restructuring in the UK, including the proposed closure of the Coventry plant, which will see the UK business return to acceptable levels of profit during 2011.

Stadco Managing Director, Dermot Sterne, commented: "These strategic developments will bring stability to the company after a short period of uncertainty and mean that Stadco Automotive group is well placed to take advantage of increased economic activity as we move out of the recession of the past two years."

Contact: Dermot Sterne

Managing Director, Stadco (UK) Ltd