RNS Number : 3864U
Jourdan PLC
14 May 2008
Jourdan plc ("Jourdan" or the "Company")
Disposal of Suncrest
On 4 March 2008, the Company announced that it proposed to downsize the business of its
subsidiary, Suncrest Surrounds Limited
("Suncrest") at its Peterlee facility so as to discontinue the mantelpiece, electric suites
and fire surrounds operations. The Company
commenced consultation with its workforce in this regard and it was anticipated that the
restructuring would have led to substantial job
losses within Suncrest. The Company also announced that it anticipated that a substantial
non-recurring provision would be required in the
second half year to 30 June 2008 as a result of the restructuring.
The Board of Jourdan is pleased to announce that Suncrest has today sold the fireplace
suites, mantelpieces and electric fires
manufacturing business, to Newco 97531 Limited ("the Purchaser"), a subsidiary of CJ Group Ltd
which owns Magiglo Limited, a manufacturer of
gas fires. The Purchaser will assume the name "Suncrest Surrounds". All of Suncrest's existing
employees will be transferred with the
business to the Purchaser and their immediate futures safeguarded. Those elements of the
Suncrest business which related to the production
of Corby trouser presses and ironing centres on behalf of the Company's subsidiary, John Corby
Limited, are being retained within the
Jourdan group of companies, although certain services will continue to be provided by the
Purchaser at the Peterlee facility pursuant to a
cooperation agreement with John Corby Limited.
The consideration for the sale comprises £70,000 payable in cash on completion, a
further £30,000 payable in cash over the next six
months and a further cash payment to the extent that the amount of the book debts of the
business as at completion exceed the amount of the
creditors. The Company estimates that this may result in a further cash payment of around
£100,000.
Pursuant to the agreement for the sale, Suncrest has also agreed to continue to pay the
rent on the existing premises occupied by the
business being sold until the end of the current lease in March 2009 at an annualised cost of
£183,500. The net financial effect of this
transaction for the Company is expected to result in a write off of assets estimated at
£1.2m (excluding the loss before tax estimated at
£400k for the year to 30 June 2008).
Commenting on the transaction David Abell, Chairman, stated "I am pleased that we have
been able to avoid closing down Suncrest by
disposing of this business to a fellow manufacturer who is taking on all employees. The
disposal will allow Jourdan to focus on its medical
packaging businesses, Westfield Medical Limited and Clinipak Limited which are continuing to
perform strongly".
Contact:
Jourdan plc
David Abell, Chairman Tel: 01476 403456
Charles Stanley Securities Tel: 020 7149 6000
Nominated Adviser & Broker
Russell Cook / Carl Holmes
This information is provided by RNS
The company news service from the London Stock Exchange
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