Last checked at 6 Jun 2008 12:59
Humberts (AIM: HUM), the national group of full service estate agents and valuers, announces today the sale of Richard Harding Estate Agents ("RHEA") for a total consideration of £1,060,000 of which £60,000 was paid in cash and the balance represents the cancellation of the outstanding deferred consideration of £1,000,000
RHEA operates from a high profile office in Clifton, Bristol and specialises in the sale of residential property. It has been sold back to the original Vendor. Richard Harding was purchased in September 2007 for a maximum total consideration of £2,543,000 of which £1.43m was paid in cash and £600,000 in Humberts shares with the balance representing deferred consideration and acquisition costs.
In the year to 31 March 2006, Richard Harding made profits of £627,000 before partners' drawings on a turnover of £1,112,000.
In the one month period ended 30 September 2007 following the acquisition by the Group, Richard Harding made a profit of £22,000 on assets of £22,000
In recognition of the current financial condition of Humberts Group plc, the Directors have concluded the disposal of RHEA 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 Richard Harding 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