Last checked at 7 Dec 2011 07:00
7 December 2011
Adventis Group Plc ("ATG.L")
("Adventis" or the "Group")
Disposal of certain assets of Adventis Coltman Limited
Adventis is pleased to announce that one of its media buying subsidiaries, Adventis Coltman Limited ("ACL"), has sold its goodwill and order book (the "Assets") to Fundamental Media (UK) Limited ("FMUK") owned 51% by Fundamental Media Limited and 49% by Louise Howse, the former Managing Director of ACL. As part of the disposal, all three of ACL's staff have transferred to FMUK.
The disposal was completed on 6 December 2011 and under the terms of the sale agreement between Adventis, ACL and FMUK (the "Sale Agreement") ACL will retain all trade debtors and liabilities which will be realised in due course after which ACL will cease to trade.
Under the terms of the Sale Agreement, the consideration payable for the Assets is £75,000 payable in cash on completion. The net proceeds of the sale will be used to reduce the Group's current bank indebtedness.
In the year ended 31 December 2010, ACL generated turnover of £7,126,000, net revenues of £710,000 and a profit before tax of £135,000. It is not possible to reliably measure, and therefore disclose, the profit attributable to the Assets from the ACL business as a whole. At 31 December 2010 the Group carried consolidation goodwill of £3,254,000 in relation to ACL which will be written off as a non-cash item in the Group's financial results for the year ending 31 December 2011. The sale of the Assets will reduce the Group's profits. However, following the departure of two key members of staff last month, it was decided that the ACL business was no longer viable and accordingly the Adventis' directors believe that a sale of the Assets and orderly wind down of the business is in the best interests of Adventis' shareholders.
Nick Winks, Chairman of Adventis, commented:
"This is not a good deal for Adventis other than it is better than the alternative. As two key members of staff had joined a competitor, we were faced with a very rapid decline of the ACL business and accompanying losses. We have rescued what little value we could."
Enquiries:
Adventis Group Plc 01494 731600
Nick Winks, Chairman
Andrew Pearson, Finance Director
Arbuthnot Securities Limited 020 7012 2000
Tom Griffiths
Rebecca Gordon