Provexis Regulatory News (PXS)

5 Oct 2005 07:00

Provexis PLC05 October 2005 PROVEXIS PLC Disposal of Altu Provexis plc ("Provexis" or the "Company") AIM: PXS.L, announces the sale of itsAltu food business to Go Lower Limited for a cash consideration of £75,000 whichwill be used for working capital purposes. As stated at the AGM, the Board has been closely monitoring the performance ofAltu. The brand has recently extended its distribution, via a new pack format,in two multiple grocers, and continues to enjoy national distribution in HighStreet and Major Multiple Grocers. However, following a strategic review, theBoard has concluded that, in order to focus on the core activity of functionalfoods, a disposal of the Altu business is in the best interests of the Companyand shareholders. For the year ended 31 March 2005, the Altu business was loss-making, afterdirect overheads on turnover of £298,000 and in the year to date has continuedto be loss-making. The disposal therefore will have a cash positive effect onProvexis' business going forward. Commenting, Dr Stephen Franklin, CEO said: "Provexis will now be able to focus its resources and management time on itscore business: the development of novel, patented, food bioactives withscientifically-proven health benefits. These will be commercialised via acombination of licensing and own-brand functional foods." For further information Provexis plcDr Stephen Franklin, CEO 07710 348 774 Bell Pottinger Corporate and FinancialEmma Kent 020 7861 3232 Go Lower LimitedKevin Dorren 07768 156206 This information is provided by RNS The company news service from the London Stock Exchange