Lakehouse - Promised disposals achieved

In its interims on 20 June Lakehouse indicated it had reached heads of terms to sell its property services and construction operations. The company announced on 17 August that the sale is now completed. The business has been divested for a potential consideration of up to £1.5m in cash. The final outcome depends on the performance of the business between the date of completion and 30 September 2021. This uncertainty is normal in the industry as there are ongoing projects and final accounts to settle on completed works. Our forecasts are unchanged as the divestment is in line with our assumptions, although the financial outcome, while potentially material, is uncertain. The provision for losses in the disposed operations, taken at the interims, of £11.8m is deemed adequate by the company at this stage.