Disposal
October 03 2003 - 10:00AM
UK Regulatory
RNS Number:5171Q
Airsprung Furniture Group PLC
03 October 2003
AIRSPRUNG FURNITURE GROUP PLC
SPRUNG SLUMBER
The board of Airsprung Furniture Group PLC is pleased to announce the sale of
the business and assets of Sprung Slumber, its bed manufacturing operation based
in Okehampton, which includes Enchanted House, its reproduction bedstead
manufacturer, to a member of the Steinhoff UK Group for a cash consideration of
#5.4m. This represents a profit on disposal of #1.8m before expenses and after
a write off of #1m goodwill previously written off to reserves. Net cash will
be enhanced by approximately #5.0m. In the year ended 31 March 2003 the assets
being disposed of generated profits before tax of #863,000.
The sale provides Airsprung with further resources to continue its investment in
people and plant at its core bed manufacturing unit in Trowbridge and allows
management to consolidate its bed production on one bespoke site. Investment in
the other Airsprung Furniture Group businesses will also benefit from this
disposal.
Sprung Slumber will become part of an extensive international furniture business
which the Airsprung board believes will provide Sprung Slumber, its employees
and its customers with significant opportunities for the future.
Profit for the year will be downgraded by the sale of Sprung Slumber. In
addition trading conditions have continued to be difficult in the sector, which
is expected to result in an overall trading performance for the year being below
market expectations. The business remains debt free and the cash position is
further strengthened by the sale of Sprung Slumber.
For further information contact:
Tony Lisanti CEO - Airsprung Furniture Group PLC 01225 779114
Ian Topping MD - Steinhoff (UK) 01823 668218
This information is provided by RNS
The company news service from the London Stock Exchange
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