Last checked at 15 May 2012 15:20
15May2012 Totally Plc ("Totally", "the Group"or "the Company") Disposal and Board Changes
Disposal of The Jewish News Limited and TotallyJewish.com ("the CMD")
The Company is pleased to announce that it has today sold the CMD to JN News and Media Group Limited, a private limited company set up for the purposes of the Disposal ("the "Disposal"). The consideration is £350,000 in cash, subject to agreed post completion adjustments. The proceeds of the Disposal will be used to reduce the Group's indebtedness and for working capital generally.
Reasons for the Disposal
As reported in the Group's preliminary results announced earlier today, the Group made a loss before taxation of £158,000 in the 12 months to 31 December 2011. This was largely due to the weak advertising conditions in the CMD, which at the subsidiary level made a loss before taxation of £8,000. Conditions did not improve during the second half of the year and subsequently the Company took the decision to seek buyers for the business.
During the same period, the Group's digital marketing division has achieved significant year on year growth, securing larger value contracts (most notably the £1.595m contract referred to below) both within and outside of the voluntary and community sectors (third sector), where the digital marketing division has a strong presence.
The Company intends to concentrate on exploiting digital applications, systems integration, online marketing, and web and mobile technology developed through its subsidiary company, Totally Communications Limited. The Group also intends to develop digital systems for the healthcare sector through its new subsidiary Totally Health Limited. As previously announced in February 2012, Totally Health Limited was awarded a £1.595m contract from the Midlands and East NHS, on behalf of the Right Care programme, for the development of web and mobile-based shared decision aids combined with back-up telephonic health coaching. The Company has now completed the development of the interactive website, capable of storing health related data, and built on the secure NHS N3 server platform. The Company is confident that it can secure future contract wins as a result of its proven capability and ability to deliver on cost and on time.
Board Changes
Clare Thompson, currently CEO of Totally Health Limited, has been appointed Chief Executive Officer of the Company, also with immediate effect. Clare has over 20 years' experience in leading health technology projects and empowering patients. Clare has been Chief Executive Officer of Totally Health Limited since May 2012 and prior to that was Managing Director of Bupa Health Dialog, overseeing several large trials using telephonic coaching and risk stratification to decrease acute episodes of long-term conditions as well as reducing costs in various NHS systems. Clare has had experience of managing large-scale technological products and implementing widespread change in several roles: as the Director of Innovation, Strategy and Engagement for NHS Choices; as Editorial Director and a founding member of the Netdoctor team; and as Editor in Chief of BioMedNet, where she also sat on the global electronic strategy committee for Reed Elsevier.
Daniel Assor will remain as an Executive Director of the Company, leading the Company's major bid team and sales and marketing strategy. Andy Margolis, formerly Managing Director of Totally Communications Limited and an Executive Director of the Company, has been appointed Chief Operating Officer of the Company, with immediate effect.
Together the newly structured executive team, led by Clare Thompson will drive the Group in its new direction.
Further information relating to Ms Thompson, as required under Schedule 2 of the AIM Rules for Companies, is set out below in the section entitled "Additional Information".
Commenting on the announcement:
Dr. Michael Sinclair, Non-Executive Chairman, said;
"It has been a privilege for us all to have been involved with the Jewish News & Media Group. The newspaper and its associated websites, together with this year's outstanding Jewish Living Exhibition, have become greatly respected both within and outside the Jewish Community. With the growth of Totally PLC's digital marketing and new Health divisions, the time has come for the two distinctive sides of the group to be independent of each other. I have every confidence that the Jewish News & Media Group will continue to flourish under its new ownership."
For further information:Totally Plc T: 020 7692 6929Clare Thompson Chief Executive Officer Merchant Securities Limited T: 020 7628 2200Lindsay Mair/Richard Goldsmith
Additional information
Under Schedule 2, paragraph (g) of the AIM Rules, the following information is disclosed:
In the past five years Clare Thompson, aged 43, has previously been a director of Utek Ltd, the UK subsidiary of Utek Corp. Ms Thompson does not have any existing directorships.
Ms Thompson has confirmed there is no additional information under Schedule 2, paragraph (g) of the AIM rules which needs to be disclosed.
XLON