Last checked at 7 Jul 2016 08:18
AEC Education Plc("AEC" or the "Company")
Disposal of Malvern House Ireland Limited
AEC announces that it has disposed of one of its subsidiary companies, Malvern House Ireland Limited, in which it had a 55% interest in the share capital, to Oscar World Education Limited, Ireland (the "Purchaser"). The consideration for the disposal is €660,000 (approximately £560,000) payable in cash on completion. The Purchaser will also sign a franchise agreement for one year enabling it to use the Malvern House brand name on payment of a royalty of 2.5% of tuition fee revenue per year. In order to execute the franchise agreement, the Purchaser has agreed to pay an upfront signing fee of €45,000 (approximately £38,500) and €25,000 (approximately £21,000) as prepayment of the 2.5% annual royalty for the year to June 2017. The franchise agreement is renewable on an annual basis.
The Company had decided on the disposal to provide more focus and resources on its wholly owned London and Far East operations.
Malvern House Ireland Limited, which operates an educational college in Dublin, reported losses before tax of £183,662 on revenue of £2.37 million for the year ended 31 December 2014 and based on unaudited management accounts to 31 December 2015 will report profit before tax of £241,555 on turnover of £2.88 million for the year ended 31 December 2015.
The proceeds of the disposal will be used to supplement the Group's cash resources. The disposal will have no impact on the other operations of the Group.
ENDS
For further information, please contact:
AEC Education Plc
Liam Swords, Chairman
Tel: 07725 836811
WH Ireland Limited (NOMAD & Broker)
Mike Coe / Liam Gribben
Tel: 0117 945 3470