For the year ending 30 December 2011, Gardening Direct generated an operating loss of £0.4 million. The book value of the assets the subject of the Disposal was £0.2 million at 30 December 2011. The proceeds of the disposal will be used to repay creditors and for general working capital purposes. The Company has no bank debt although it does owe £1.0m to Palatine Private Equity being the balance of the deferred consideration outstanding for the acquisition of Flowers Direct, which is repayable on 31 December 2012. The Company retains the freehold of Retreat Farm which was valued earlier this year at £3.3m. The Board is currently considering strategic options for the company and for the maximization of the long-term value of Retreat Farm and will update shareholders at its interim announcement.
9 Jul '12
Sale of certain of the assets of the Garden Division The Board is pleased to announce that it has disposed of the assets of the retail business of Gardening Direct to Jersey Choice Marketing Limited (the "Purchaser"), a company associated with Jersey Choice Limited ("Jersey Choice") for a gross consideration of £2.875m of which £2.25m will be satisfied in cash at completion. Payment of the remaining £0.625m will be made in cash on 30 April 2013. The Company had originally intended to continue to operate its Growing and Live Dispatch Business ("GLD") from its property at Retreat Farm but it is now in advanced discussions to lease the greenhouses and dispatch centre at Retreat Farm to Jersey Choice until 30 June 2014. If, as expected, this lease is entered into then GLD will be discontinued.
Disappointing about this company and its share price. I have always done good business with them and had good value etc from them. I know they tried to move away from their core business to expand shame it all seems to have gone wrong.
3 Apr '12
Does anybody have an opinion on the latest news that there are selling off Listen2, Garden Bird Supplies and Garden Center Online at a loss. They said not so long ago that they would concentrate on the last to divisions? There not going to be left with much now
21 Feb '12
Proposed sale of the Gifts Division The Board is pleased to announce that terms have been agreed, subject to shareholder approval, to dispose of the business and assets of the Gifts Division to Interflora British Unit ("Interflora") (the "Disposal") for a gross consideration of £2.4 million, to be satisfied in cash on completion. Following the sale of the properties at Retreat Farm and Meadow Springs in December 2011, the Disposal is a continuation of the Board's strategy to enhance shareholder value. The sale of the Gifts Division will effect the Company's full exit from the direct-to-consumer sale of gifts, including cut flowers and houseplants. Following the Disposal, the focus of the continuing group will be on the Gardening Direct and Garden Bird Supplies businesses. The Company intends to use the proceeds for general working capital purposes. The Gifts Division comprises the Flying Flowers and Flowers Direct businesses along with a small number of retail outlets trading under the Drake Algar brand. Through these businesses, the Gifts Division offers flowers, bouquets and related gifts to customers across the UK. For the year ending 31 December 2010, the Gifts Division generated an operating loss of £0.8 million, and for the six months ending 1 July 2011, an operating loss of £0.8 million. The book value of the assets subject of the Disposal was £3.2 million at 1 July 2011. The Disposal is a Class 1 transaction and is therefore subject to shareholder approval under the Listing Rules. The Company has also been made aware that Interflora is intending to notify the Office of Fair Trading with respect to the acquisition of the Gifts Division for clearance under the Enterprise Act 2002. Both the Company and Interflora have the right, but not the obligation, to terminate the Disposal if the Office of Fair Trading refers the transaction to the UK Competition Commission. A circular containing details of the Disposal and a notice of extraordinary general meeting will be sent to shareholders in due course. Pursuant to the Disposal, the Company's normal timetable for the preliminary announcement of full year results in early March has now changed. Currently it is expected that the full year results will be announced in late April. A further announcement on the timing of the full year results will be made in due course.
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