Disposal (9274W)
November 29 2010 - 1:00AM
UK Regulatory
TIDMJNY
RNS Number : 9274W
Journey Group PLC
29 November 2010
Journey Group Plc
Disposal of Interest in Joint Venture for GBP3.5 million in cash
and Trading Update
Journey Group plc ("Journey" or together with its subsidiaries
the "Group"), a leading provider of in-flight products, catering
and media services to the travel and airline industry, is pleased
to announce the disposal today of its 49% interest in
Alpha-Airfayre Limited ("AAL") for GBP3.5 million in cash.
The AAL joint venture commenced in November 2009 combining the
in-flight catering operations at London's Heathrow airport of
Journey's wholly-owned subsidiary Air Fayre Limited ("Air Fayre")
and Alpha Flight UK Limited, part of Autogrill S.p.A. Journey's
share of AAL's loss after taxation for the 10 month period ended 31
October 2010 was GBP0.5 million.
The total cash realised from the disposal of Air Fayre's
activities is now GBP8.5 million, including the GBP5.0 million
received on the establishment of the joint venture.
The current proceeds of GBP3.5 million will be used to further
strengthen the Group's balance sheet: GBP3.0 million will be used
to repay part of the GBP4.5 million, three-year facility announced
in September 2010 and the remainder of GBP0.5 million will add to
the Group's cash resources, reducing the Group's net debt to GBP0.2
million on a pro-forma basis as at 31 October 2010.
Stephen Yapp, Executive Chairman said
"I am very pleased with both the price achieved for the disposal
and the strategic repositioning of the Group that this
facilitates.
Trading for the ten month period to 31 October 2010 has been
ahead of the previous corresponding period and was in line with our
internal expectations.
2010 has been a critical year for us. The continued improvement
in the Group's performance and the successful refinancing position
us well to focus on the growth opportunities in our remaining
businesses."
Journey Group plc contacts:
Stephen Yapp
+44 (0)20 8606 2000
info@journeygroup.plc.uk
Carl Fry
+44 (0)20 8606 2000
info@journeygroup.plc.uk
Peel Hunt Limited (Nominated Adviser & Broker)
+44 (0)20 7418 8900
Daniel Harris
This information is provided by RNS
The company news service from the London Stock Exchange
END
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