Last checked at 30 Mar 2012 07:00
30 March 2012
Flying Brands Limited (the "Company" or the "Group")
Proposed sale of the Garden Bird Supplies, Garden Centre Online and Listen2 businesses
The Board is pleased to announce that terms have been agreed, subject to shareholder approval, to dispose of (first) the Garden Bird Supplies ("GBS"), Garden Centre Online ("GCO") and Listen2 businesses to The Garden and Home Trading Company Limited (a subsidiary of MBL Group PLC) for a gross consideration of £0.72 million, and (second) certain intellectual property of GCO to Williams Commerce Limited for a gross consideration of £0.08m (together the "Disposals"). The consideration will be satisfied in cash on completion of each Disposal.
GBS is an online, catalogue and telephone-based retail business selling bird and other animal foods, wildlife products and gifts. GCO is an online and telephone-based retail business for garden equipment. Listen2 is a catalogue and telephone-based retail business involving the sale of music, DVDs and audio books.
For the year ending 31 December 2010, GBS, GCO and Listen2 generated combined revenue of approximately £6 million and an operating profit of £0.6 million. For the six months ending 1 July 2011, the businesses generated combined revenue of approximately £3.1 million and a small operating loss. The net book value of the assets subject of the Disposal was £4.9 million at 1 July 2011.
Following the sale of the properties at Retreat Farm and Meadow Springs in December 2011, and the proposed sale of the Gifts Division, the Disposals are a continuation of the Board's strategy to enhance shareholder value. The Disposals will result in the Group's exit from the wild bird food industry previously served by GBS, will remove the online outlet, GCO, from the garden division's web-based retail operations and will result in the Group's full exit from the entertainment retail market previously served by Listen2. If the Disposals and the sale of the Gifts Division (as announced on 21 February 2012) complete, the remaining businesses and associated assets of the Company will comprise the Gardening Direct business, the Retreat Farm growing and live despatch businesses and the Retreat Farm freehold property itself.
The Disposals are a Class 1 transaction and are therefore subject to shareholder approval under the Listing Rules. A circular containing details of the Disposals, together with the disposal of the Gifts Division, and a notice of extraordinary general meeting will be sent to shareholders in due course.
For further information, please contact:
Flying Brands Limited 01245 228 300Stephen Cook, Chief ExecutiveStuart Dootson, Finance Director
Smithfield Consultants 020 7360 4900John Kiely