Team Internet Share News (TIG)

LONDON (Dow Jones)--Innovation Group PLC (TIG.LN) Thursday said it will book a GBP5.2 million exceptional charge during fiscal 2010, following its exit from two property leases. The firm--which provides enterprise software and business process outsourcing solutions to insurance, financial services, motor and fleet industries--indicated at the time of its interim results in May that it was considering reducing its property requirements in both the U.K. and U.S. At that time it estimated that the exceptional charge would total about GBP4.5 million. The GBP5.2 million charge includes write-downs on fixed assets and a provision for the costs of the properties to the end of their respective leases, although Innovation Group said efforts will be made to mitigate this charge through sub-leases. The company has identified two further leased properties in other regions which it said will be subject to similar consolidation. More specific details weren't provided, but the group said as a result of these actions operating costs in 2011 and beyond will fall by about GBP1.2 million. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; hannah.benjamin@dowjones.com Order free Annual Report for Innovations Group PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB0006872096 or call +44 (0)208 391 6028 (END) Dow Jones Newswires July 08, 2010 02:43 ET (06:43 GMT)