Information  X 
Enter a valid email address

Jacks (William) PLC (JCKS)

  Print      Mail a friend

Monday 07 January, 2002

Jacks (William) PLC

Disposal

Jacks(William) PLC
7 January 2002



WE HAVE MADE PREVIOUS ANNOUNCEMENTS IN DECEMBER 2000 AND JULY 2001 WITH REGARD
TO THE TERMINATION OF OUR MERCEDES-BENZ FRANCHISE DEALERSHIPS IN SUNNINGDALE
(TRADING AS SUNNINGDALE CARRIAGE COMPANY) AND NEWBURY (TRADING AS SAVERNAKE)
FOLLOWING A REVIEW OF THEIR DEALER NETWORK BY DAIMLER CHRYSLER UK LIMITED
(DCUK) CARRIED OUT IN 2000. WE ARE NOW ABLE TO ANNOUNCE THAT WITH EFFECT FROM
1st JANUARY 2002, THE SUNNINGDALE TERRITORY HAS TRANSFERRED TO GREENOAKS
(MAIDENHEAD) LIMITED, A SUBSIDIARY OF SIGMA HOLDINGS LIMITED, AND WITH EFFECT
FROM 4TH JANUARY 2002 THE NEWBURY TERRITORY HAS TRANSFERRED TO CRUICKSHANK
MOTORS LIMITED, A SUBSIDIARY OF SYTNER GROUP PLC.

EACH TRANSACTION IS SEPARATE AND THE DETAILS ARE AS FOLLOWS :

SUNNINGDALE

IN ACCORDANCE WITH THE ARRANGEMENTS AGREED WITH DCUK, THE WILLIAM JACKS GROUP
HAS RECEIVED A TERRITORY RELEASE PAYMENT OF £3.030M IN CASH AND A FURTHER £
286K HAS BEEN PLACED INTO ESCROW PENDING EXPERT DETERMINATION OF THE TREATMENT
OF STOCKING INTEREST IN THE CALCULATION OF THE TERRITORY RELEASE PAYMENT. THE
TERRITORY RELEASE PAYMENT REPRESENTS COMPENSATION FOR LOSS OF THE
MERCEDES-BENZ TERRITORY AND THEREFORE NO TURNOVER OR PROFITS ARE BEING
DISPOSED OF WHICH COULD OTHERWISE HAVE BEEN MAINTAINED.

PARTS STOCK OF THE DEALERSHIP HAS BEEN SOLD FOR £112K IN CASH.

THE NET CONSIDERATION FOR ALL OTHER ASSETS OF THE DEALERSHIP BEING SOLD AND
CONTRACTS ASSIGNED IS £383K IN CASH.

THE PURCHASER IS NOT ACQUIRING THE EXISTING PROPERTY FROM WHICH THE
SUNNINGDALE BUSINESS HAS OPERATED.

SAVERNAKE

ALSO IN ACCORDANCE WITH THE ARRANGEMENTS AGREED WITH DCUK, THE WILLIAM JACKS
GROUP HAS RECEIVED A TERRITORY RELEASE PAYMENT OF £783K. THE TERRITORY RELEASE
PAYMENT REPRESENTS COMPENSATION FOR LOSS OF THE MERCEDES-BENZ TERRITORY AND
THEREFORE NO TURNOVER OR PROFITS ARE BEING DISPOSED OF WHICH COULD OTHERWISE
HAVE BEEN MAINTAINED.

THE LEASEHOLD PROPERTY FROM WHICH THE DEALERSHIP OPERATES IS BEING SOLD FOR £
1.522M CONDITIONAL UPON OBTAINING LANDLORDS' CONSENT TO ASSIGN THE LEASES. A
DEPOSIT OF £380K HAS BEEN PAID TO THE WILLIAM JACKS GROUP WITH THE BALANCE
PAYABLE UPON COMPLETION OF THE LEASE ASSIGNMENTS. IT IS ANTICIPATED THAT THIS
WILL BE ACHIEVED DURING JANUARY 2002. THE NET BOOK VALUE OF THE PROPERTY IS £
1.242M.

PARTS STOCK OF THE DEALERSHIP HAS BEEN SOLD FOR £101K IN CASH.

THE NET CONSIDERATION FOR ALL OTHER ASSETS OF THE DEALERSHIP BEING SOLD AND
CONTRACTS ASSIGNED IS £58K IN CASH.

THE TOTAL AMOUNT OF £6.275M (SUBJECT TO ADJUSTMENT AS REFERRED TO ABOVE) IN
RESPECT OF THE TRANSACTIONS WILL SIGNIFICANTLY STRENGTHEN THE CONSOLIDATED
BALANCE SHEET OF WILLIAM JACKS PLC. WILLIAM JACKS' INTERIM STATEMENT AT 31ST
JULY 2001 REPORTED NET ASSETS OF £7.398M AND NET DEBT OF £2.006M. THE PROCEEDS
WILL BE USED FIRSTLY TO REPAY A LLOYDS TSB BANK LOAN OF £700K AND THE BALANCE
WILL BE USED FOR GENERAL CORPORATE PURPOSES.

OUR SUNNINGDALE BUSINESS HAS OCCUPIED ONE OF THE FINEST LOCATIONS IN THE
COUNTRY AND WITHIN OUR INTERIM STATEMENT WE WERE DELIGHTED TO ADVISE OUR
SHAREHOLDERS OF A NUMBER OF POSITIVE EVENTS ARISING FROM THE MERCEDES-BENZ
TERMINATION. FIRSTLY, THAT WE HAD REACHED AGREEMENT WITH BMW TO TRANSFER OUR
EXISTING BMW OPERATION IN ASCOT TO THE SUNNINGDALE PREMISES. SECONDLY, THAT WE
HAD BEEN AWARDED THE ROLLS-ROYCE FRANCHISE FOR A SIGNIFICANT AREA OF SOUTHERN
ENGLAND FOR REPRESENTATION FROM SUNNINGDALE FROM 1ST JANUARY 2003; AND FINALLY
THAT THE MOVE OF BMW HAD ENABLED US TO SECURE REPRESENTATION FROM ASCOT FOR
JAGUAR WHICH WILL BE EFFECTIVE FROM THE SECOND QUARTER OF 2002. WE ARE NOW
ALSO VERY PLEASED TO ANNOUNCE THAT WITHIN 2002 WE SHALL COMMENCE REPRESENTING
LAND ROVER IN ASCOT WITH A NEW SHOWROOM, SUBJECT TO PLANNING, BEING DEVELOPED
ON OUR EXISTING AFTER-SALES PREMISES. TOGETHER WITH THE TRANSFER TO US ON 1ST
JANUARY 2002 OF THE BRIGHTON TERRITORY FOR THE VOLVO FRANCHISE, THESE CHANGES
BUILD UPON OUR RELATIONSHIPS WITH BOTH BMW GROUP AND PREMIER AUTOMOTIVE GROUP.

FOR FURTHER INFORMATION, PLEASE CONTACT JOHN ADAIR, CHIEF EXECUTIVE OR ANDREW
DICK, COMPANY SECRETARY ON 01344 625007.

END

--------------------------------------------------------------------------------