Sale of RM Asia-Pacific Pty Ltd

RNS Number : 7297R

RM PLC

09 November 2011

 



9 November 2011

RM plc

Sale of RM Asia-Pacific Pty Ltd

RM plc ("the Group") issued a Trading Update and Strategic Review on 29 September 2011 stating that, after reviewing the Group's international sales strategy, the Board had decided to dispose of the Group's Australian operations. It was confirmed at that time that Heads of Terms had been signed with a potential purchaser. The transaction has now been completed on the terms set out below. This disposal assists in meeting the Group's strategic focus objective, given that these operations have only been a modest contributor to Group results and are geographically distant.

Agreement has been reached with Civica PTY Limited ("Civica") for the sale, on 8 November 2011, of 100% of the issued share capital of RM Asia-Pacific Pty Ltd. In addition to conducting trade in the Asia-Pacific region, RM Asia-Pacific is the holding company of RM Asia-Pacific NZ Ltd, and is the beneficial owner of the units in CAZ Unit Trust. The estimated consideration of £0.9m, which is subject to net assets at completion, is receivable in cash and this will be retained within the Group to meet operational requirements.

Gross assets subject to disposal were £6.2m at 31 March 2011(including £2.4m of goodwill and acquired intangible assets) and, for the year to 30 September 2010, these businesses contributed £0.4m to Group profit before tax. It is expected that the business being sold will be loss making during the period from 1 October 2010 to completion.

Terms have been agreed with Civica for the continued distribution of the Group's school management systems software (Integris G2), interactive classroom software (Easiteach) and Learning Platform software products in the Australian and New Zealand markets. Other geographies previously served by RM Asia-Pacific Pty Ltd (Hong Kong, Malaysia, China and other countries in the Asia-Pacific region) will be managed directly from RM's UK operations.   

Contacts:

RM plc

Martyn Ratcliffe, Executive Chairman                               08450 700300

Iain McIntosh, Chief Financial Officer

FTI Consulting                                                             020 7831 3113

James Melville-Ross

Sophie McMillan

 

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