Jourdan PLC - Disposal
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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