MIL.L Regulatory News (MIL)

8 Aug 2005 14:54

Millfield Group PLC08 August 2005 8 August 2005 PRESS RELEASE £9m cash proceeds for Millfield on sale of Lifetime to Norwich Union Millfield Group plc (Millfield), the leading independent national financialservices advisory group, today announces the sale of its 25% interest(10,562,500 ordinary shares) in Lifetime Group Limited (Lifetime) to NorwichUnion Life Investment Partnership (NU). The disposal proceeds amount to £9m ofinitial cash consideration before costs, with an additional contingent deferredconsideration of up to £6m. The deferred consideration is payable over the nextfour and a half years based upon the achievement of certain targets betweenMillfield and Lifetime. This will result in an exceptional pre-tax profit of at least £5.2m forMillfield. Millfield's original investment was £3.25m excluding costs. Lifetime was set up in June 2002 to provide a multi-asset class distribution andadministration Wrap Account platform for IFA's which includes the transmissionand settlement of orders on behalf of clients of IFAs. A "Wrap Account" is anInternet based investment service which enables advisers and their clients toview all their financial assets on one platform. Lifetime commenced trading on25 April 2005 and has yet to return a profit. Trading is in line with itsbusiness plan. Paul Tebbutt, Chief Executive, Millfield commented, "When we floated back inMarch 2001, we said that we intended to develop new ways of delivering IFAservices in a way that would offer financial advisers and their clients asignificantly improved investment and administration process, combining wideproduct choice with advice". The initial £9m cash proceeds will be used to improve the company's workingcapital position and therefore it will enable the Group to focus on furtherdeveloping its core financial services advisory business, which is key tocontinued success as the Group moves forward. The Group will also launch a fairdeal programme for its advisers as part of the commitment to "treating customersfairly". Under this programme up to 50% of the contingent deferred considerationof £6m may be paid to advisers based on certain targets being achieved. Thisprogramme will be launched on 1 September 2005. For further information please contact: Paul Tebbutt at Millfield on 020 8604 2607, mobile 07958 992812 Arthur Milton at Millfield on 020 8604 2623, mobile 07711 714215 Mark Llewellyn-Slade at Llewellyn-Slade PR on 01444 242792 About Millfield • Further information about Millfield is available at www.millfield-partnership.co.uk • Millfield Group plc was floated on the Alternative Investment Market of the London Stock Exchange in March 2001 • Millfield is the leading national independent financial advisory company in the UK, offering truly independent advice, primarily in the pensions, life insurance, investment and mortgage sectors, as well as long-term care provision, personal wealth management and the corporate financial planning arena. Millfield also has a specialist division dealing with offshore investment, insurance and employee benefits. This information is provided by RNS The company news service from the London Stock Exchange