Volvere PLC Disposal of JMP Consultants Limited (4922J)
December 18 2015 - 2:00AM
UK Regulatory
TIDMVLE
RNS Number : 4922J
Volvere PLC
18 December 2015
Volvere plc ("Volvere" or the "Group")
18 December 2015
Disposal of JMP Consultants Limited ("JMP" and the
"Company")
Volvere (AIM: VLE), the growth and turnaround investment
company, is pleased to announce the disposal yesterday of JMP, its
transport planning and engineering consultancy, to Systra Limited
("Systra"), part of the Systra group of companies. The total
consideration, which is payable in cash, is GBP8 million, subject
to an adjustment based on the level of working capital and net debt
as at the close of business yesterday. Of the sale proceeds,
GBP0.5m will be held in a retention account for 18 months
post-completion. Volvere, which owns 76.14% of JMP, is expected to
retain approximately GBP5.5 million after transaction costs and
incentive payments and bonuses payable to staff and management
relating to the performance of the Group as whole.
Background to and reason for the Disposal
The Company has performed very well since acquisition and has
made a valuable contribution to the Group. However, we believe that
a combination with Systra will create greater opportunities for the
Company, its staff and clients, due to the complementary nature of
both companies, than would be possible within Volvere.
Volvere acquired JMP in May 2013 for a consideration of GBP0.4
million and also provided various working capital loans. Since
then, JMP has repaid all loan balances and paid dividends to
Volvere of GBP0.45 million, reflecting its strong underlying
trading.
Financial information and use of proceeds
JMP's audited revenue and profit before tax* for the year ended
31 December 2014 were GBP11.8 million and GBP0.45 million
respectively and its net assets (excluding intra-Group balances)
were GBP1.71 million.
In the Group's unaudited interim results for the period to 30
June 2015, JMP reported a profit before tax amounting to GBP0.33
million on revenue of GBP6.39 million. Unaudited net assets
(excluding intra-Group balances) at that time were GBP1.40
million.
The net disposal proceeds will be added to the Group's cash
reserves for use in pursuit of Volvere's investing policy, which is
to invest in or acquire growth or turnaround stage companies.
Commenting on the disposal, Jonathan Lander said: "We are
delighted with the successful turnaround of JMP. This has been in
no small part due to the hard work and commitment of the Company's
management and staff. We wish them all the very best for their
continuing success in the future."
* before Group management charges and Group interest
For further information contact:
Volvere plc:
Jonathan Lander Tel: +44 20
7634 9700
N+1 Singer (Nominated
Adviser):
Aubrey Powell / Liz Tel: +44 20
Yong / Tom Smale 7496 3000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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