Last checked at 9 Jul 2012 07:00
9 July 2012
Flying Brands Limited (the "Company")
Sale of certain of the assets of the Garden Division
The Board is pleased to announce that it has disposed of the assets of the retail business of Gardening Direct to Jersey Choice Marketing Limited (the "Purchaser"), a company associated with Jersey Choice Limited ("Jersey Choice") for a gross consideration of £2.875m of which £2.25m will be satisfied in cash at completion. Payment of the remaining £0.625m will be made in cash on 30 April 2013.
The Company had originally intended to continue to operate its Growing and Live Dispatch Business ("GLD") from its property at Retreat Farm but it is now in advanced discussions to lease the greenhouses and dispatch centre at Retreat Farm to Jersey Choice until 30 June 2014. If, as expected, this lease is entered into then GLD will be discontinued.
For the year ending 30 December 2011, Gardening Direct generated an operating loss of £0.4 million. The book value of the assets the subject of the Disposal was £0.2 million at 30 December 2011.
The proceeds of the disposal will be used to repay creditors and for general working capital purposes. The Company has no bank debt although it does owe £1.0m to Palatine Private Equity being the balance of the deferred consideration outstanding for the acquisition of Flowers Direct, which is repayable on 31 December 2012. The Company retains the freehold of Retreat Farm which was valued earlier this year at £3.3m.
The Board is currently considering strategic options for the company and for the maximization of the long-term value of Retreat Farm and will update shareholders at its interim announcement.
For further information, please contact:
Flying Brands Limited 01245 228 300
Stephen Cook, Chief Executive
Stuart Dootson, Group Finance Director
Smithfield Consultants 020 7360 4900
John Kiely