Disposal
February 02 2010 - 1:00AM
UK Regulatory
TIDMFAN
RNS Number : 5122G
First Artist Corporation PLC
02 February 2010
First Artist Corporation plc
("First Artist" or the "Company" or the "Group")
Disposal of Optimal Wealth Management Limited
First Artist Corporation plc (AIM:FAN) is pleased to announce that it has
completed the sale of its independent financial advisory firm, Optimal Wealth
Management Limited ("Optimal"), to Conforto Financial Management Limited
("Conforto") for a total consideration of GBP1.5 million, to be satisfied wholly
in cash. GBP1.3 million of the consideration was paid upon completion, with two
further payments of GBP100,000 to be made in April and July 2010.
The net proceeds of sale will be used for the reduction of debt.
Optimal, formerly known as ABG Financial Management Limited, was acquired by
First Artist in August 2005. Its joint Managing Directors, Sean Scahill and
Peter Kelsey, have continued to lead the business and each of them are due from
First Artist a sum of around GBP100,000, to be satisfied in cash or shares, or a
combination of the two, following the successful conclusion of its sale. In
September 2007 the Group announced that Optimal had achieved its maximum earn
out payments, following which the total consideration paid was GBP3 million. In
the financial year ended 31 August 2009 the business produced an operating
profit of GBP285,300 on a turnover of GBP1.836 million. Its net assets at that
date were GBP145,012.
The sale follows the Company's announcement in June 2009 that it was exploring
its strategic options with regard to its non-core businesses.
Conforto is an innovative, fee based independent wealth management firm best
known for its expertise in advising professional sportspeople, entrepreneurs and
business owners, and as such represents an ideal fit for Optimal.
Commenting on the disposal, Jon Smith, Chief Executive of First Artist, said:
"The sale of Optimal is a significant step towards our stated goals of reshaping
the Group as a highly focused media business, and reducing debt. We also
believe that its acquisition by Conforto will provide real opportunities and
benefits for Optimal's clients and employees. We extend our thanks to Sean
Scahill, Peter Kelsey and their team for their contribution over the last four
and a half years, and we wish them and Conforto all the very best for the
future".
Peter Klauber, Chairman of Conforto, said:
"We are delighted to have secured Optimal, a business which shares our vision
for the future of the financial services market in the UK. We are excited to be
working with their excellent team and look forward to the next stage of the
strategic growth plan".
- ends -
For further information:
+------------------------------------------------------------------------+----------------------------+
| First Artist Corporation plc | tel: 020 7993 0000 |
| Jon Smith, Chief Executive | www.firstartist.com |
| Julianne Coutts, Director & Company Secretary | |
| | |
+------------------------------------------------------------------------+----------------------------+
| Daniel Stewart & Company plc, Nominated Adviser and Broker | tel: 020 7776 6550 |
| Stewart Dickson/Graham Webster | www.danielstewart.co.uk |
| | |
+------------------------------------------------------------------------+----------------------------+
Notes to Editors:
First Artist Corporation plc was admitted to AIM in 2002.
First Artist's group companies are among the leading brands in their fields
under the following categories:
Media - entertainment advertising, marketing, design, promotions, digital media,
merchandising, signage and front of house displays for the West End, Broadway
and Las Vegas via the Dewynters, SpotCo and Newman Displays brands. Sponsorship
rights marketing through First Rights Limited.
Events - offers a broad range of events such as conferences, company activity
days, parties, venue finding, delegate management and client events for private
and public sector clients through The Finishing Touch.
Entertainment/Sport - representation of media personalities and football
players/clubs across the UK, Europe and the US by First Artist Management and
the Sport division.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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