INS.L Regulatory News (INS)

15 Feb 2005 14:32

Infast Group PLC15 February 2005 EXIT FROM MANUFACTURING COMPLETED Infast Group plc ("Infast" or the "Company") announces that today it completed amajor part of its strategic programme, announced in July 2004, with the sale ofthe assets and business of Infast Philidas Limited ("Philidas" or the"business"). The withdrawal from all manufacturing operations has been achieved: • At a financial impact less than expected in July 2004. The exceptional charge excluding goodwill realisation is expected to be around £7 million (pre-tax relief) compared to the £8 million announced in July 2004. • Earlier than previously expected. • Primarily by sale rather than closure. • Without impacting the availability of product to Infast's core services divisions. Graham Titcombe, Chairman of Infast said: "Having exited from manufacturing,Infast is now positioned to focus fully on its value added Inventory Managementbusinesses, which are located in Europe and North America. "Further, the property disposals relating to our exit from manufacturing arecurrently underway. The sale of these properties will generate significantadditional cash flow in 2005. This will be used to reduce the Company's debt." Disposal of Philidas Philidas, which is located at Pontefract in West Yorkshire, is a producer ofmetal fasteners. In the year ended 31 December 2004, the business had turnover of £7.9 millionand made a trading loss of £0.8 million. Under the terms of the sale, the purchaser will acquire the net trading assetsof the business for an initial cash consideration of £0.4 million, plus deferredconsideration, estimated to be £0.3 million, payable as product is supplied toInfast. Debt due to Philidas for goods recently supplied will not pass to thepurchaser. This is estimated to be a further £0.9 million, representing anadditional cash flow benefit to Infast. The book value of the net assets of thebusiness being sold is approximately £2.9 million. The purchaser has undertaken all employment and lease liabilities of Philidas. For further information, please contact Infast Group plc Tel: 01452 880 500Robert Sternick, Chief ExecutiveJohn Kimber, Finance Director Rawlings Financial PR Limited Tel: 01756 770 376John RawlingsCatriona Valentine This information is provided by RNS The company news service from the London Stock Exchange