Information  X 
Enter a valid email address

Alldays PLC (~090)

  Print      Mail a friend

Monday 29 November, 1999

Alldays PLC

Disposal of Trademarket Ltd

Alldays PLC
29 November 1999


      Disposal by Alldays plc ('Alldays' or the 'group')
            of Trademarket Limited ('Trademarket')

The board of Alldays plc today announces that it has reached
agreement for the sale of the fixed assets and the business of
Trademarket Limited, the cash and carry business of Alldays,
to Booker plc ('Booker') for an estimated net consideration of
£6.55 million.

Booker will pay to Alldays a cash consideration of £7.35
million and £10.0 million for stock on account, pending a
formal stock valuation.  To the extent that the formal stock
valuation shows that stock is valued higher or lower than
£10.0 million the consideration will be increased or reduced
on a pound for pound basis, subject to a maximum stock value
of £13.5 million.  Alldays has also agreed to contribute an
amount estimated to be up to £0.8 million to top up the
transferring pension assets of the employees of Trademarket.
The actual amount will be determined by actuarial valuation of
the transferring members' benefits.

GROUP STRATEGY

Alldays has developed the largest convenience store network in
the UK by number of stores.  The board believes that the
group's core skills lie in its retailing expertise and that
Alldays is well placed to take advantage of the opportunities
in the convenience store sector. In recent months, management
has focused on planning and implementing the Regional
Development Company ('RDC') buy-in strategy as outlined in the
1999 interim results.

Against this background, Alldays has received a number of
approaches from parties expressing interest in purchasing its
Trademarket business.  These approaches have taken Alldays
into detailed discussions with Booker which have resulted in
the disposal.

The disposal of Trademarket releases funds to reduce group
borrowings and will so assist in the implementation of the RDC
buy-in strategy and the ongoing financing of the group.

The recent RDC acquisitions, and the ongoing discussions with
the directors of a significant number of other RDCs with a
view to their purchase, will result in a focused convenience
store retailing business operated through an appropriate
network ownership structure.

ACTIVITIES AND FINANCIAL RECORD OF TRADEMARKET

Trademarket is the cash and carry business of the Alldays
group.  It is a wholesaler to the independent grocery,
catering and allied trades.  Trademarket operates nine depots,
seven in Scotland and two in England.

In the year ended 1 November 1998, Trademarket achieved an
operating profit of £0.3 million on turnover of £127.7
million.  As at 1 November 1998, the transferring fixed assets
of Trademarket had a net book value of £6.24 million.

GROUP BANKING FACILITIES

The board is also pleased to announce that the group banking
facilities agreement has been signed today.  These facilities
will finance principally the group's ongoing business with an
element available for the RDC acquisitions programme.


George Duncan, Chairman of Alldays said

'The sale of Trademarket allows Alldays to concentrate fully
on its convenience stores business and the formal agreement of
banking facilities secures appropriate funding'


CONTACT DETAILS:

Alldays plc                   01703 645200
George Duncan, Chairman
Stuart Lawson, Finance Director

Cardew & Co.                  0207 930 0777
Richard Fallowfield