RNS Number:0952V
James R. Knowles (Holdings) PLC
02 December 2005
James R Knowles (Holdings) PLC ("Knowles")
2 December 2005
Disposal of 90% shareholding in Knowles Loss Adjusters Ltd ("KLA")
James R Knowles Holdings PLC announces that binding heads of agreement have been
signed for the disposal of its 90% shareholding in Knowles Loss Adjusters Ltd
(the "Disposal") to a management team led by Mr David Parker, Managing Director
of KLA. Mr Parker already beneficially owns the remaining 10% shareholding in
KLA. The consideration for the Disposal is #850,000 payable in cash on
completion. The sale proceeds will be applied to reduce the indebtedness of the
Group.
The principal focus of the Knowles Group is in the area of dispute resolution
and related services to the construction sector, both in the UK and
internationally. KLA is a loss adjusting business and has few common customers
or links with the rest of the Group's activities and is viewed by the directors
as non-core, which has led to the decision to proceed with the Disposal.
In the year ended 31 July 2005 KLA made a profit before taxation of
approximately #187,000 on turnover of #2.6 million. At 31 July 2005 KLA had net
assets of approximately #608,000.
Due to the size of the transaction and the interest of Mr Parker in the
Disposal, the transaction falls under Rule 13 of the AIM Rules - "Related Party
Transactions". As such the Knowles directors consider, having consulted with
Knowles' nominated adviser, Brewin Dolphin Securities Ltd, that the terms of the
transaction are fair and reasonable insofar as Knowles' shareholders are
concerned.
Contacts
James R Knowles (Holdings) PLC 08707 530 600
Brian Quinn - Chief Executive
Charlotte Parsons - Finance Director
Brewin Dolphin Securities Ltd 0113 241 0130
Andrew Kitchingman - Director
Keith Williams - Assistant Director
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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