30 Sep 2016 13:32
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Avesco Group plc
Sale of the Business and Assets of Presteigne Limited
Avesco Group plc (together with its subsidiaries, the "Group"), the provider of services to the corporate presentation, entertainment and exhibition markets, is pleased to announce the sale of the business and assets of its broadcast hire subsidiary, Presteigne Limited ("Presteigne") to Presteign Broadcast (2016) Limited, a company which will be led by Presteigne's long serving CEO, Mike Ransome, and supported by funding from NVM Private Equity LLP.
The transaction, which exchanged and completed today, is for a consideration of £5m, which was paid in cash at completion, but is subject to adjustment for the trading performance of the business in the period commencing on 1 August 2016 and ending today. The net sale proceeds will be used to reduce the Group's debt.
Presteigne specialises in the hire of video, audio and wireless technology for professional broadcast productions. In the financial year ended 30 September 2015, Presteigne made trading losses of £1.9m, but is expected to make a small profit in the financial year ending today, due in part to revenue derived from the supply of equipment and services in connection with the 2016 Rio Olympics and the Formula 1 GP. As at 31 July 2016, the net book value of the business and assets sold was £6.4m. The net effect on the post tax profits of the Group is broadly neutral.
This transaction leaves the Group focused on its audio visual services division, centred around its highly profitable Creative Technology business, backed by a strong balance sheet with minimal debt.
For further information please contact:
Avesco Group plc 01293 583400
Richard Murray, Executive Chairman
John Christmas, Finance Director
finnCap 020 7220 0500
Julian Blunt/Scott Mathieson, Corporate Finance
Malar Velaigam, Corporate Broking