Last checked at 5 Mar 2018 07:00
5 March 2018
This announcement contains inside information.
St Ives plc
("St Ives" or the "Group")
Disposal
St Ives, the international marketing services group, announces that it has completed the disposal of a significant part of its Marketing Activation segment (the "Disposal") consisting of SP Group Limited, Service Graphics Limited, Tactical Solutions UK Limited and Flare Limited (together "the Division") to SelmerBridge Limited. This forms part of the board's continuing strategy to refocus the Group's activities.
St Ives' Marketing Activation segment will now consist solely of St Ives Management Services Limited, its print management business, which has been retained within the Group.
The total consideration for the Disposal was based on an enterprise value of £6.0 million (subject to a cash and working capital adjustment) and was paid in full in cash at the time of completion.
The Division provides point of sale, large format printing services, field sales and marketing services to a largely UK customer base. As at 28 July 2017, the Division had gross assets of £40.8 million and in the financial year then ended generated £106.3 million of revenue and a loss before tax of £4.4 million.
The Disposal is consistent with the Group's strategy of refocusing on its Strategic Marketing segment whilst moving away from the commoditised sectors of the print market. The Division has continued to experience challenging and competitive trading conditions, with downward price pressure resulting in reduced levels of profitability over recent years.
The net proceeds of the Disposal will be used to reduce the Group's debt.
Matt Armitage, Chief Executive of St Ives, said:
"Having taken considerable action over the past year to stabilise the performance of the Division, we are pleased to complete the sale as part of a planned disposal process.
"The sale is in line with the board's stated strategy of focusing on the Group's core businesses, in particular those within its higher growth, higher margin Strategic Marketing segment."
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For further information please contact:
St Ives plc 020 7928 8844
Matt Armitage, Chief Executive
Brad Gray, Chief Financial Officer
MHP Communications 020 3128 8788
Tim Rowntree / Giles Robinson / Luke Briggs