Andalas Energy & Power Regulatory News (ADL)

1 Apr 2005 10:52

AdVal Group PLC01 April 2005 Adval Group plc ("Adval" or the "Company") 1 April 2005 AdVal, the e-learning training solutions provider, is pleased to announce thedisposal of its Testline subsidiary, Testline Limited ("Testline") to itsmanagement team, consisting of Eric Wilkinson and Andrew Baird. The totalconsideration payable to the Company amounts to approximately £173,200 in cashon completion, subject to an adjustment following the preparation of completionaccounts, plus settlement within two months of amounts due to Adval of £40,000. Unaudited management accounts for Testline for the first eleven months of thecurrent year, with figures extracted from the audited financial statements forthe year ended 31 March 2004 respectively, provided for comparison, are asfollows: profit before management charges and tax of approximately £67,700(2004: £58,100) on turnover of approximately £422,400 (2004: £403,600); andunaudited net assets at 28 February 2005 of approximately £63,200 (2004:£142,600). Testline's main activity is the manual testing of computer softwareprograms, primarily for the entertainment industry, and ancillary activities. The management of Testline are considered related parties for the purposes ofRule 12 of the rules of the AIM Market of the London Stock Exchange. TheDirectors, having sought advice from Shore Capital and Corporate Limited, are ofthe opinion that the terms of the transaction are fair and reasonable insofar asthe holders of Ordinary Shares are concerned. Commenting on the disposal, Dr Lars Ahrell, Chairman, said: "Although Testlinehas been profitable, we have not, in practice, been able to develop it further,or generate the synergies between the businesses of Testline and the rest of theAdVal group as was envisaged at the time of the original acquisition in 2001. Wehave, therefore, accepted an offer brought to us by the management team to buyback the business. We intend to use the cash realised from, and the managementtime released by, the disposal to develop our core e-learning business, eitherorganically or by acquisition. The management team have our best wishes as theytake the Testline business forward on their own. Overall, we are satisfied with progress this year; although figures to the endof March are not yet available, we see no reason why the results for the yearincluding Testline should not be consistent with market expectations.' Contacts: Adval Group plcDr Lars Ahrell, Chairman 01296 388100 Shore Capital and Corporate LimitedDru Danford 020 7408 4090 This information is provided by RNS The company news service from the London Stock Exchange