Last checked at 26 Aug 2011 09:48
FOR IMMEDIATE RELEASE 26 August 2011
Managed Support Services plc
("MSS" or the "Group")
Sale of Compliance Division
The Board of MSS is pleased to announce it has today completed the sale of the Group's Compliance Division for an agreed gross consideration payable at completion of £3.85 million.
The Group expects to receive net cash of £3 million following adjustments for working capital and the settlement of inter group balances. The Division has been sold to Capita Symonds, a trading division of The Capita Group Plc.
The services offered by the Compliance Division were the consultancy based provision of Health & Safety advice and the provision of Water Treatment monitoring and legislative compliance with water related legislation. The core of the Division was the Health & Safety unit, with the Water Treatment unit being a start up operation, which commenced in late 2010.
The Health & Safety unit on a stand alone basis reported an adjusted operating profit of approximately £670,000 for the 12 months to 31 March 2011, on turnover of approximately £2.33 million.
The Water Treatment business incurred small losses for the initial trading period to 31 March 2011 on turnover of approximately £400,000, but is now profitable.
The disposal has been undertaken by way of a business and assets transfer. Net assets of the relevant businesses as at completion were approximately a negative balance of £300,000, prior to consideration related adjustments to working capital.
The Division had a headcount of approximately 30 staff, representing some 10 per cent. of the Group's total headcount prior to disposal. The turnover of the Compliance Division was expected to represent approximately 10-12 per cent. of the Group's current year turnover.
The proceeds of the disposal will be used to fund the continued development of the Group's much larger Building Services division.
The Board undertook the disposal because the Group is not of sufficient scale to fund the development of two divisions by acquisition and has therefore elected to concentrate the Group's management and financial resources on the growth of the Building Services division.
The sale of the Division leaves the Group in a much stronger financial position which will be important for further business wins and customer service levels.
Commenting on the disposal, Simon Beart the Chief Executive said
"This disposal simplifies the Group and strengthens the balance sheet, both of which we believe will help us in further new business gains."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Managed Support Services plc: | |
Simon Beart, Chief Executive Piers Wilson, Finance Director | 07710 444370 01483 735703 |
Cenkos Securities plc: | |
Nick Wells / Stephen Keys | 020 7397 8900 |
Buchanan Communications: | |
Richard Darby / Nicola Cronk / Helen Chan | 020 7466 5000 |
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Notes to editors
Managed Support Services plc is a leading supplier of Environmental Compliance and technical Building Services. The Group provides a broad range of Environmental Compliance services and HVAC building maintenance services for commercial properties. MSS operates in a range of diverse markets with customers managing or owning commercial property, hotels and retail buildings. Further information is obtainable from www.mssplc.com.