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24 Nov 2009 11:24
cScape Group plc ("the Company")
Disposal of ITM Graphics Limited and ITM Publishing Services Limited (together the "ITM Group")
cScape Group plc (AIM:CSC) announces that, on 23 November 2009, the Company disposed of its wholly owned subsidiaries, ITM Group, to the existing management team of ITM Group, for a maximum cash consideration of £150,000. The consideration comprises an initial cash payment of £25,000 and deferred payments, in aggregate, of £125,000 over a period of six years (subject to certain conditions).
The principal activity of ITM Group is computer typesetting, pre-press services and management services.
For the year ended 30 June 2009, ITM Graphics Limited made a profit before tax of £5,802 on turnover of £1,910,708. As at 30 June 2009, ITM Graphics Limited had net assets of £145,522. For the year ended 30 June 2009, ITM Publishing Services Limited made a loss before tax of £61,032 on turnover of £1,150,511. As at 30 June 2009, ITM Publishing Services Limited had net liabilities of £61,031.
The directors believe that the disposal of the ITM Group will allow cScape to focus on the remaining subsidiaries within the group and release additional working capital.
The disposal, as set out above, is considered to be a related party transaction under the AIM Rules for Companies. The directors of cScape consider, having consulted with the Company's nominated adviser, that the terms of the Disposal of ITM Group are fair and reasonable insofar as the Company's shareholders are concerned.
24 November 2009
For further information, please contact:
Smith & Williamson Corporate Finance Limited Tel: 020 7131 4000
Azhic Basirov / Charles Combe
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