Sale Of Compliance Division (1047N)
August 26 2011 - 3:48AM
UK Regulatory
TIDMMSS
RNS Number : 1047N
Managed Support Services PLC
26 August 2011
FOR IMMEDIATE RELEASE 26 August 2011
Managed Support Services plc
("MSS" or the "Group")
Sale of Compliance Division
The Board of MSS is pleased to announce it has today completed
the sale of the Group's Compliance Division for an agreed gross
consideration payable at completion of GBP3.85 million.
The Group expects to receive net cash of GBP3 million following
adjustments for working capital and the settlement of inter group
balances. The Division has been sold to Capita Symonds, a trading
division of The Capita Group Plc.
The services offered by the Compliance Division were the
consultancy based provision of Health & Safety advice and the
provision of Water Treatment monitoring and legislative compliance
with water related legislation. The core of the Division was the
Health & Safety unit, with the Water Treatment unit being a
start up operation, which commenced in late 2010.
The Health & Safety unit on a stand alone basis reported an
adjusted operating profit of approximately GBP670,000 for the 12
months to 31 March 2011, on turnover of approximately GBP2.33
million.
The Water Treatment business incurred small losses for the
initial trading period to 31 March 2011 on turnover of
approximately GBP400,000, but is now profitable.
The disposal has been undertaken by way of a business and assets
transfer. Net assets of the relevant businesses as at completion
were approximately a negative balance of GBP300,000, prior to
consideration related adjustments to working capital.
The Division had a headcount of approximately 30 staff,
representing some 10 per cent. of the Group's total headcount prior
to disposal. The turnover of the Compliance Division was expected
to represent approximately 10-12 per cent. of the Group's current
year turnover.
The proceeds of the disposal will be used to fund the continued
development of the Group's much larger Building Services
division.
The Board undertook the disposal because the Group is not of
sufficient scale to fund the development of two divisions by
acquisition and has therefore elected to concentrate the Group's
management and financial resources on the growth of the Building
Services division.
The sale of the Division leaves the Group in a much stronger
financial position which will be important for further business
wins and customer service levels.
Commenting on the disposal, Simon Beart the Chief Executive
said
"This disposal simplifies the Group and strengthens the balance
sheet, both of which we believe will help us in further new
business gains."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Managed Support
Services plc:
Simon Beart, 07710 444370 01483 735703
Chief Executive
Piers Wilson,
Finance
Director
Cenkos
Securities plc:
Nick Wells / 020
Stephen Keys 7397
8900
Buchanan
Communications:
Richard Darby / 020
Nicola Cronk / 7466
Helen Chan 5000
Notes to editors
Managed Support Services plc is a leading supplier of
Environmental Compliance and technical Building Services. The Group
provides a broad range of Environmental Compliance services and
HVAC building maintenance services for commercial properties. MSS
operates in a range of diverse markets with customers managing or
owning commercial property, hotels and retail buildings. Further
information is obtainable from www.mssplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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