Lakehouse finalises disposal of Orchard to World Fuel Services

Asset and strategy support services firm Lakehouse announced on Monday that it had wrapped up its disposal of the entire issued share capital of Orchard to World Fuel Services Europe for a total cash consideration of £12.4m.

Lakehouse said a further £1.9m was being held in held in escrow to protect against any potential claims that could arise from the sale and purchase agreement and would be released in equal instalments on the first and second anniversaries of the deal's completion.

Orchard, which provides consultancy advice to its corporate clients in relation to managing their energy costs said proceeds from the disposal would be used to reduce the group's debt position.

In the same update, Lakehouse also advised shareholders that it had been appointed to a framework operated by its subsidiary Everwram, with Aberdeenshire Council, that would see the group credit £44m over the four years of the annual call off contracts, and had also won its first energy efficiency framework deal that carried £600k in water contracts and £500 for commercial installations in Yorkshire.

Bob Hold, the chief executive, said, "We are delighted to announce today the successful award of the significant landmark contract with Aberdeenshire Council, which endorses our strong reputation for delivering excellent service in local council residential property maintenance in Scotland. In addition, we are pleased to be able to update on the continued progress being made in our strategic growth divisions of Energy Services and Compliance. The new contract wins meet our stated objective of focusing on continuing to grow organically the Lakehouse Group."

As of 1240 BST, shares had moved ahead 11.97% to 39.75p.