Rtc Grp. Regulatory News (RTC)

28 Jul 2006 13:00

ATA Group PLC28 July 2006 28th July 2006 ATA Group Plc ("ATA") Sale of the business of Gem-Weld (UK) Limited The Directors of ATA are pleased to announce the following disposal:- Completion took place today of the sale of the assets and goodwill of Gem-Weld(UK) Limited for a cash consideration of £264,000 payable in five instalmentsover fifteen months. Mr Bill Douie, Chairman of ATA Group Plc, commented "The provision by the private sector of rail Track Welding Services was throwninto turmoil following the return of maintenance of the infrastructure of theNational Rail Network to Network Rail. Since that time there have been periodsof feast and famine in demand for such services and during a period of lowdemand in 2004 ATA Group purchased Gem-Weld (UK) Limited. During late 2004 and2005 costly re-organisation of the Company took place and satisfactory businessflows and trading results were enjoyed for approximately twelve months to 31stMarch 2006. At the beginning of the Network Rail budget year on 1st April 2006 demand againreduced to wholly un-commercial levels, a situation which continues, and ATAGroup reluctantly concluded that it was not possible to provide this servicethrough a stand-alone company. Accordingly the opportunity has been taken to dispose of this activity andterminate what has not been a successful investment for the Group. Theconsideration will be used to further strengthen the Group's cash reserves. This disposal allows further simplification of the Group range of core businessactivities which are strongly focussed on the provision of recruitment andtraining services to the manufacturing, construction and transport industriespredominantly in the UK." Contacts:Bill Douie, Chairman, ATA Group PlcAndrew Bailey, Group Managing Director ATA Group Plc Tel: 01454 310 069Paul McLoughlin, Rail Division Managing Director, ATA Group Plc This information is provided by RNS The company news service from the London Stock Exchange