Disposal of Peter Cox Limited
6 August 2012
Restore plc
Disposal of Peter Cox Limited
Restore plc ("Restore" or "the Company"), the UK office services provider, today announces that it has sold Peter Cox Limited ("Peter Cox"), its building repair business, to Castlefield House Limited for a total consideration of £3.6 million.
Castlefield House Limited is a company controlled by Harvey Samson, previously Finance Director of Restore, who on 18 June 2012 reverted to his previous role as a consultant to the Company. The disposal is consistent with Restore's strategy of focusing solely on office services, where it is now market leader in office relocations and number three in UK records management. The net proceeds from the disposal will be used to reduce debt and fund further bolt-on acquisitions in office services.
Under the terms of the transaction, Restore received £2.2 million at completion and will receive a further £500,000 at the year end. Three further payments of £300,000 each will be made in September 2013, 2014 and 2015. There are no performance criteria related to the deferred payments. For the year to December 2011, Peter Cox recorded profit before tax of £0.8 million on turnover of £15.2 million. Net assets at completion were £1.4 million.
The acquisition is a related party transaction pursuant to the AIM Rules for Companies, because Harvey Samson was until recently the Finance Director of Restore. The directors, having consulted with Cenkos Securities plc, the Company's nominated adviser, consider that the terms of the acquisition are fair and reasonable insofar as Restore's shareholders are concerned.
Charles Skinner, Chief Executive of Restore plc, said:
"The divestment of Peter Cox has been a strategic goal for some time. It has become an increasingly strong business over the last two years, but it did not fit with the rest of our activities. Its disposal completes the restructuring of the Group, and leaves Restore solely focused on office services, where we continue to make good progress. I expect Peter Cox to thrive as an independent business and wish Harvey and his team the very best for the future."
Contact:
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Restore plc |
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Charles Skinner, Chief Executive Adam Councell, Group Finance Director |
07966 234 075 07860 402434 |
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Cenkos |
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Nick Wells |
020 7397 8920 |
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Adrian Hargrave |
020 7397 8922 |
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FTI Consulting |
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Nick Hasell |
020 7269 7291 |
This information is provided by RNS
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