Disposal

9 May 2005 14:50

Andrews Sykes Group PLC09 May 2005 Andrews Sykes Group plc Sale of Accommodation Hire Limited 9 May 2005 Andrews Sykes Group plc (the "Company") announces that on 6 May 2005 it soldAccommodation Hire Limited (the "Business") to Wernick Hire Limited. Accommodation Hire Limited specialises in the hire and sale of temporaryaccommodation units and toilet facilities to a wide range of customers includingthose in the event hire and the construction market sector. Whilst it is a verysuccessful company in its own right, achieving a profit after tax of £0.6million in 2004, it was not regarded as a core activity to the Andrews SykesGroup. Therefore the Board consider that the disposal is in the best interestsof the Company. The total cash consideration on the sale of the Business is approximately £10million comprising £8.9 million for the sale of the shares, of which £0.4million is deferred pending the finalisation of the completion accounts, and£1.1 million for loan repayments. The profit on disposal will be approximately£7 million. The Board is currently considering various alternative uses for the availablefunds. Until such time as a decision is taken the cash will be placed on a shortterm interest bearing deposit account. Ends For further information contact: RJ Stevens, Chief Executive, 01932 750393 This information is provided by RNS The company news service from the London Stock Exchange