IPSA GROUP PLC - Settlement of Dispute with Turbocare S.p.A.

Settlement of Dispute with Turbocare S.p.A.

IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code IPSA   ISIN GB00BOCJ3F01
JSE Share Code IPS    ISIN GB00BOCJ3F01
("IPSA" or "the Company")

Settlement of Dispute with Turbocare S.p.A.

The Directors of IPSA are pleased to announce that a dispute
over sums owed to Turbocare S.p.A (“Turbocare”) under the
sale and purchase agreements and the refurbishment agreement
for the Siemens Westinghouse 701DU (ex Fiat Avio TG50)
turbines purchased from Turbocare in 2007 has today been
settled by an agreement reached between the parties under
which Turbocare will be paid an initial sum of 3 million
euros on or before 21 November 2014 and a further sum of 2.6
million euros in cash or equivalent value by 30 September
2015. Security for these sums has been put in place by IPSA
through a charge over a receivable in the amount of £3.2m
due from Rurelec PLC (“Rurelec”) for the balance of
payments due following its purchase of two 701DU turbines in
June 2013.

As previously notified, the disputed amounts claimed by
Turbocare have already been fully provided for in the
Company’s financial statements in an amount of £4.4m, being
€5.6m at current exchange rates.

The Company is in discussions for the provision of loan
finance to bridge the sum owed by Rurelec. The Company will
need to raise at least 3 million euros by 21 November 2014
to make the initial cash sum payment to Turbocare to avoid
security being called by Turbocare.

Chairman Richard Linnell, commenting, said that he was
delighted that a settlement had been reached, and that an
arbitration had been averted, allowing management to focus
on the operations of the business.


For further information contact:


Phil Metcalf, CEO                  +44 (0)20 7793 5615
IPSA Group PLC

James Joyce / James Bavister       +44 (0)20 7220 1666
W H Ireland Ltd

Riaan van Heerden,                 +27 (0)21 887 9602
PSG Capital (Pty) Ltd

London
29 October 2014

Date: 29/10/2014 02:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.