Disposal of St Ives Management Services Limited
25 June 2018
This announcement contains inside information.
St Ives plc
("St Ives" or the "Group")
Disposal of St Ives Management Services Limited ("SIMS")
St Ives, the international marketing services group, today announces that it has completed the disposal of SIMS, its legacy print management business, to Paragon Customer Communications Limited (the "Disposal").
The total consideration for the Disposal, after costs, was £9.5 million which was based on an enterprise value of £11.0 million (subject to cash, debt and working capital adjustments), and was paid in full in cash on completion.
The net proceeds of the Disposal will be used to further reduce the Group's debt.
SIMS provides print management, procurement and delivery services to UK based customers. For the year ended 28 July 2017, SIMS had gross assets of £16.1 million and reported £49.5 million of revenue and a profit before tax of £5.1 million.
The Disposal strengthens St Ives' balance sheet, resulting in a Group now entirely focused on its Strategic Marketing businesses, consistent with management's long-term growth strategy.
Matt Armitage, Chief Executive of St Ives, said:
"The disposal of SIMS, our last remaining Marketing Activation business, marks the beginning of an exciting new chapter for St Ives.
The Group has now transformed from one entirely focussed on print to one exclusively focussed on higher growth, higher margin Strategic Marketing businesses, with a market leading digital proposition at its core. We look forward to the future with confidence.
We would like to take this opportunity to thank our colleagues from SIMS for all their hard work and dedication over the years, and we wish them every success in the future."
- Ends -
For further information please contact:
St Ives plc 020 7928 8844
Matt Armitage, Chief Executive
Brad Gray, Chief Financial Officer
MHP Communications 020 3128 8788
Tim Rowntree / Giles Robinson / Luke Briggs
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund