Disposal of Nightingale Archi

RNS Number : 8972M

Tribal Group PLC

01 June 2010

 



Tribal Group plc

Disposal of Nightingale Architects Limited

Tribal Group plc (Tribal), a leading provider of public sector services in the UK and internationally, is pleased to announce the disposal of Nightingale Architects Limited (Nightingale) for cash consideration of up to £13.1m to IBI Holdco Limited, the UK subsidiary of IBI Group, a Canada based international architectural, urban and transportation systems design firm.  The disposal follows the announcement in March 2010 that Tribal would explore strategic options for each of its three Support services businesses.

Nightingale is a leading architecture practice specialising in the healthcare, education and science markets. The business is based predominantly in the UK and has been established since 1989.  It employs approximately 260 staff across 7 offices.

In the audited accounts for the year ended 31 December 2009, Nightingale had gross assets of £14.1m and it made adjusted operating profit¹ of £1.3m on turnover of £17.4m. Nightingale's senior management team will be transferring with the business. The disposal is expected to be dilutive to earnings.

The cash consideration of up to £13.1 million (which includes the purchase of approximately £2.8 million of cash held within Nightingale at completion) will be used to strengthen the Group's balance sheet and is to be satisfied by:

·     An initial consideration at completion of £8.2m;

·     Deferred consideration of:

o  £1.8m payable on 31 December 2010; and

o  Further consideration of between £1.1m and £3.1m payable in two tranches in respect of the periods from completion to 30 April 2011, and the following year to 30 April 2012, based on the profit performance of Nightingale over those periods and payable on 1 June 2011 and 2012 respectively or, if later, following agreement of the performance for the relevant periods. 

Commenting on the disposal of Nightingale, Peter Martin, Chief Executive of Tribal, said:

"Tribal's core markets are education, health and government, for which we provide service delivery, advisory and technology solutions and so Nightingale is no longer central to our strategic direction. We wish both parties continued success in the future."

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For further information, please contact:  

Tribal Group plc                                                                  Telephone: [phone]  

Peter Martin, Chief Executive  

Steve Breach, Group Finance Director  

Weber Shandwick Financial                                              Telephone: [phone]

Nick Oborne

Stephanie Badjonat

Clare Thomas                                        

Editors' note:  

Tribal is a leading public sector services company.  We provide service delivery, advisory and technology solutions focused on improving the quality and effectiveness of public services in the UK and internationally. Tribal's core markets are education, health and government.  

Our people are sector experts and we work in partnership with a wide range of organizations, including schools, hospitals, local authorities, housing associations and government departments. Tribal has over 2,000 staff and our work spans 40 countries across the world. Tribal's shares are quoted on the London Stock Exchange (TRB). Links: Tribal Group plc website: www.tribalgroup.com.

This Statement has been prepared for and is addressed only to our shareholders as a whole and should not be relied on by any other party or for any other purpose. Tribal, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

This Statement may contain forward-looking statements. Any forward-looking statement has been made by the directors in good faith based on the information available to them up to the time of approval of this Statement and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. To the extent that this Statement contains any statement dealing with any time after the date of its preparation, such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur and therefore the facts stated and views expressed may change. Tribal undertakes no obligation to update these forward-looking statements.

¹ Note: Adjusted operating profit excludes goodwill impairment charges and internal management charges.

 

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