FAN Volution Group Plc

RNS Number:9647F
Formation Group PLC
11 July 2006


 
                             Formation Group plc
                                        
                      Disposal of Proactive Scandinavia A/s

Formation Group plc ("Formation Group" or "the Company"), the sports marketing
and management company, is pleased to announce the disposal of Proactive
Scandinavia A/s ("Proactive Scandinavia"), its Scandinavian football agency
business based in Denmark, for a total cash consideration of #2.0m.

The sale has been agreed with First Artist Corporation PLC who will be paying
#1.9m of the total consideration in cash upon completion, with the balance
payable on the first anniversary of completion.

The Board of Formation Group considered the financial offer for Proactive
Scandinavia in the context of its future development potential within the Group
and felt that it was in the best interests of both the Company's shareholders
and the employees of Proactive Scandinavia to accept the offer. The
consideration will repay the Group's bank borrowings, with the surplus being
available for reinvestment by the Company.

In its last full financial year ended 31 August 2005, Proactive Scandinavia made
a profit after tax of approximately #0.2m. The goodwill and net assets of
Proactive Scandinavia are approximately #1.8m. After expenses incurred on the
transaction, Formation Group has incurred a loss on disposal of #0.3m. Proactive
Scandinavia made a loss after tax of #0.2m in the nine months' period ended 31
May 2006.

Neil Rodford, chief executive of Formation Group, commented;

"This is a logical step for us to take as we plan for the future of Formation
Group and is an attractive agreement for all parties. On behalf of the Board, I
would like to thank the employees of Proactive Scandinavia for their
contribution to the Group and wish them continued success in the future."

Contacts:

Formation Group plc, Neil Rodford, Chief Executive Tel: 00 44 (0)1625 539 832
WH Ireland Ltd, David Youngman                     Tel: 00 44 (0)161 832 2174
Biddicks, Katie Tzouliadis                         Tel: 00 44 (0)020 7448 1000




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
DISGGGMNVGVGVZM

Volution (LSE:FAN)
Historical Stock Chart
From Jun 2024 to Jul 2024

Volution (LSE:FAN)
Historical Stock Chart
From Jul 2023 to Jul 2024