2 Oct 2017 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014
THE STANLEY GIBBONS GROUP PLC(the "Group" or "Company")Sale of Interiors Division
On 9 May 2017, the Board announced the sale of a major part of the Interiors division to Millicent Holdings Limited ("Millicent"), which transaction subsequently failed to complete, as reported on 4 August 2017.
The Board is today pleased to confirm completion of the sale of Dreweatts 1759 Limited. The sale is to Gurr Johns Limited ("Gurr Johns") for a consideration of £1.25m paid in cash on completion, plus a maximum additional consideration of £0.4m, payable over the next 24 months (alongside the assumption of certain other liabilities currently associated with the Interiors division). Certain assets and liabilities of Dreweatts and the intellectual property rights and goodwill in respect of the Mallett brand, all part of the Group's Interiors division were transferred to Dreweatts 1759 Limited on 31July 2017 in anticipation of the proposed sale to Millicent. However, the sale to Gurr Johns does not include the Mallett and Made by Meta brands (which have been transferred back to the Group), although the disposal does include the Group's Bloomsbury Auctions brand).
In addition to the Mallett and Made by Meta brands, the Group retains Mallett inventory, against which Gurr Johns has agreed an interest free advance of £300,000 ahead of an auction currently planned for November 2017. The Group also retains the benefit of the rental income from the former Mallett New York premises, which will allow the Group to derive additional benefit from the remaining assets of the Interiors division in the coming years.
As announced on 4 August, a termination fee is now payable to the Company by Millicent under the terms of the relevant agreement and the Company intends to seek recovery of this by enforcing certain collateral that was provided to the Company.
The proceeds of the sale from the disposal of the interiors division will be used to provide additional working capital for the Group.
The Company has also today announced its results for the year ended 31 March 2017 which are available on the Company's website and set out in full in a separate announcement.
Enquiries:
The Stanley Gibbons Group plc Harry Wilson Andrew Cook
| +44 (0)207 836 8444 |
finnCap Ltd (Nomad and Broker) Stuart Andrews / Christopher Raggett / Anthony Adams (corporate finance)
| +44 (0)20 7220 0500 |
Yellow Jersey PR (Financial PR) Charles Goodwin | +44 (0)7747 788 221 |