Sale of Continental Shelf 547 & 548 Ltd

RNS Number : 1075K

AssetCo PLC

15 August 2012

 

Issued on behalf of AssetCo plc

Date: Wednesday 15 August 2012

                                                                                                                                                                                Immediate Release

AssetCo plc

("AssetCo" or the "Company")

Sale of Continental Shelf - 547 Limited & 548 Limited

AssetCo plc is pleased to announce the sale of its UK vehicle leasing and maintenance businesses to AB & A Investments Limited.

This disposal sees the Company exit its historic UK vehicle leasing and maintenance contracts which were based on a flawed business and financial structure and has been the principal reason for the significant decline in shareholder value.

Following completion of this sale, the Board and Senior Management are now able to focus on creating shareholder value through the Company's restructured business model, positioning AssetCo as a provider of outsourced Fire and Rescue operations.  Currently, the AssetCo business operates a contract in the UAE for the provision of personnel, training, operational equipment and facilities management as part of an outsourced fire-fighting service.  The Company is also pursuing further opportunities in the Middle East, where it sees potential for expansion.

The consideration for the sale of Continental Shelf 547 Ltd and Continental Shelf 548 Ltd and their subsidiaries, AssetCo London Limited, AssetCo Engineering Limited, AssetCo Lincoln Limited and AssetCo Solutions Limited, which hold the contracts with London and Lincoln Fire authorities, is £2.

In the audited 18-month period ended 30 September 2011, the companies being sold made a loss after exceptional items but before tax of GBP16.5 million on turnover of GBP33.5 million and in the six month period to 31 March 2012, based on unaudited numbers, the companies made a loss after exceptional items but before tax of GBP0.5 million on turnover of GBP12.6 million.  As at 30 September 2011, the net liabilities of the companies being sold had a book value of GBP49.1 million and at 31 March 2012 the net liabilities on the same basis had a book value of GBP49.5 million.

Shareholders will continue to be updated on progress throughout the year.

Enquiries:
Tudor Davies, Chairman	Richard Day/ Jamie Cameron	Fiona Tooley
AssetCo plc	Arden Partners plc	TooleyStreet Communications
Tel: [phone]	Tel:[phone]	Mobile: [phone]

Editor's Note:

AssetCo PLC

www.assetco.com

Ticker AIM: ASTO.L

AssetCo is principally involved in the provision of management and resources to the fire and emergency services in the Middle East.

The financial performance of AssetCo plc includes the trading performance of the Company's contract for outsourced Fire and Rescue services in the United Arab Emirates ('UAE'), and in the six months ended 31 March 2012, Revenues were £5.52m; Operating profits £0.50m and profits after interest and taxation of £0.47m. The completion of the receipt of funds from shareholders as part of the financial restructuring increased net cash at Bank and in hand from £1.69m at 30 September 2011 to £5.2m at 31 March 2012, and net assets were £5.6m.

 

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