Last checked at 30 May 2008 15:48
Humberts Group plc 30 May 2008
Disposal of Thomson Currie
Humberts (AIM: HUM), the national group of full service estate agents and valuers, announces today the sale of Thomson Currie ("Thomson Currie") for a total consideration of £1,850,000 of which £50k was paid in cash and the balance represents the cancellation of the outstanding deferred consideration of £1,800,000.
Thomson Currie has offices in Islington and Clerkenwell offering services in residential sales & lettings as well as a land and new homes division. It has been sold back to the original vendors who include employees of Thomson Currie. Thomson Currie was purchased in September 2007 for a total of £5.8m of which £1.6m was paid in cash and £0.8m in shares with the balance representing deferred consideration and acquisition costs.
For the year ended 31 March 2007, Thomson Currie made adjusted EBITDA (Earnings before interest, tax depreciation and amortisation) of £0.83 million on turnover of £2.58 million.
In the one month period ended 30 September 2007 following the acquisition by the Group, Thomson Currie made a profit before tax of £35,000 on net assets of £35,000.
In recognition of the current financial condition of Humberts Group plc, the Directors have concluded the disposal of Thomson Currie in a very short timeframe and consequently have not had sufficient time to seek prior consent of its shareholders to the terms of the transaction pursuant to Rule 15 of the AIM Rules for Companies. However, the Directors believe that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. In making this statement the Directors have taken into account the advice of its restructuring advisers.
The proceeds from the sale of Thomson Currie will be used to assist the Group's working capital position.
Following the above, Humberts will continue to evaluate its options in the current challenging market and will update shareholders in due course with further actions it has taken.
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For further information:
Humberts Group plc - 020 7491 8888
John McLean, Executive Chairman
Michael Nower, Interim Chief Executive Officer
Nigel Cartwright, Chief Financial Officer