Tissue Regenix Group Regulatory News (TRX)

4 Dec 2006 16:08

Torex Retail PLC04 December 2006 TOREX RETAIL PLC ANNOUNCES PHASE TWO OF CORPORATE RESTRUCTURING TO INCREASE FOCUS ON CORE BUSINESSES THROUGH DISPOSAL OF NON CORE OPERATIONS AND DIRECTORSHIP CHANGES Torex Retail Plc ("Torex"), the leading international supplier of innovativecomputer systems to the retail sector, is pleased to announce the sale of noncore operations. A package of businesses, product lines, assets and distribution rightscomprising Leisure, Hotel and Digital Signage systems activities has been soldfor a maximum consideration of £8.0 million. The package of Non Core Operations have been sold to Shoo 291 Limited, a newcompany formed to effect the acquisitions by Ed Dayan and Mark Pearman who areboth Directors of Torex, but who will be stepping down from the Board withimmediate effect. These Non Core Operations are expected to achieve full yearrevenues of an estimated £6.5 million in 2006 and comprise a number of smallcompanies and businesses employing 65 people across the UK, US, South Africa ,Australia and Malaysia. Separately, Ace Casino Equipment Pty Limited, a South African subsidiaryoperating in the casino and gaming sector has been sold to Source IP Limited fora consideration of £1.8m. The combined effect of the divestments on full year revenues and operatingprofit is estimated at a reduction of £1.8m and £0.3m respectively. Thesebusiness units have a disproportionately high level of activity in the lastquarter of the year. The disposal increases the focus of the Group on its main markets in Retail,Hospitality, Quick Service Restaurants and Petroleum & Convenience freeing upvaluable management time and resources. Chris Moore, Chairman of Torex, commented: "The disposal of these small non core operations significantly sharpens thefocus of the Group both in terms of sector and geographic concentration. Due totheir small size and contribution the non core operations have not, and willnot, achieve their true potential in a large group like Torex. It is thereforeright for them to move forward under new ownership which will give them thefocus and investment they require. On behalf of the Board I would like to thank all the Torex employees who aretransferring to the new company for their hard work and dedication during theiremployment with our Group. The Board would like to thank Ed Dayan and Mark Pearman for their contributionto the development of the Group and we wish them and their new team everysuccess in their new venture." BOARD CHANGES In addition Torex confirms that arrangements have been made for restructuring ofthe Board. Chris Moore will remain on the Board as Non Executive Chairman untilsuch time as the company appoints a new independent Non Executive Chairman. Mr Moore has entered into a full time consultancy agreement with Torex for aminimum period of 12 months under which he will actively manage top level clientrelationships in certain major global accounts. A fixed term consultancy arrangement has also been agreed with Nigel Horn, LegalDirector and Company Secretary, who will leave the Board with immediate effect. Marcus Leek, Chief Finance Officer has been appointed Company Secretary pendinga permanent appointment. Chris Moore in his position as Non Executive Chairman and the Directors nowleaving Torex continue to hold substantial shareholdings and support thebusiness going forward. Neil Mitchell, Chief Executive Officer of Torex stated:- "Since my arrival as Chief Executive Officer of Torex Retail plc and as part ofmy strategic review, this re-focusing of the Group around core operations andDirectorship changes to streamline the Board are significant steps in enabling afresh perspective being brought by new management in aggressively growing thenew Torex Retail going forward. Trading remains in line with market guidanceand we expect to post further positive updates including information on newcontract wins in the near future." Enquiries:- R Neil W Mitchell Chief Executive OfficerMarcus Leek Chief Finance OfficerGavin Palmer Corporate Governance & Investor Relations ManagerTorex Retail Plc0870 300 6061 Ginny Pullbrook/Sebastian Hoyle/Freida Moore/Lucie HollowayCitigate Dewe Rogerson020 7638 9571 This information is provided by RNS The company news service from the London Stock Exchange