DVSG Davis Service

 

TIDMDVSG 
 
RNS Number : 3001X 
Davis Service Group PLC 
03 December 2010 
 

 
FOR IMMEDIATE RELEASE 
                           3 December 2010 
 
 
                          THE DAVIS SERVICE GROUP PLC 
 
                            Disposal of Björnkläder 
 
 
The Board of The Davis Service Group Plc ("the Group") is pleased to announce 
the disposal of Björnkläder AB, its Swedish direct sales business, to Litorina, 
a private equity company based in Sweden. 
 
The transaction values Björnkläder at GBP28.5 million, which will be received in 
full at completion, expected to be before 31 December 2010, subject to usual 
competition clearances. In the twelve months ended 30 October 2010, the business 
reported revenue of GBP44.4 million and operating profit of GBP2.4 million and 
net assets (excluding cash balances) at that date of GBP20.0 million. The 
disposal is expected to result in a small pro forma dilution to earnings per 
share in 2011. 
 
Peter Ventress, Chief Executive of the Group, commented, "This disposal is a 
further important step in our drive for stronger growth and increased returns 
for shareholders. With other parts of our business offering greater opportunity 
for higher growth and returns, our recent strategic review identified 
Björnkläder as a non-core business for the Group. We will be focussing our 
investment on our key growth markets of Workwear, Mats, Washroom & Cleanroom 
across all regions and in our UK Hotel and Healthcare linen businesses. We wish 
the management and employees of Björnkläder all the very best for the future." 
 
For further information contact: 
+--------------------------------------------+--------------------------+ 
|  The Davis Service GroupPeter Ventress,    |  Financial               | 
| Chief Executive                            | DynamicsRichard Mountain | 
| Kevin Quinn, Finance Director              | Telephone 020 7269 7186  | 
| Telephone 020 7259 6663                    |                          | 
|                                            |                          | 
+--------------------------------------------+--------------------------+ 
 
Notes: 
1.         Davis Service Group is a focused European textile maintenance 
business with leading positions in most of the countries in which it operates. 
As a focused business we are able to mobilise our resources to drive our 
strategies in our core area of expertise. 
2.         Sourced from management accounts; operating profit before exceptional 
items and amortisation of customer contracts and intellectual property rights. 
3.         Statements made in this announcement that look forward in time or 
that express management's beliefs, expectations or estimates regarding future 
occurrences are "forward-looking statements" within the meaning of the United 
States federal securities laws. These forward-looking statements reflect the 
Group's current expectations concerning future events and actual results may 
differ materially from current expectations or historical results. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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