21st Mar 2006 07:01
Multi Group PLC21 March 2006 Multi Group Plc Disposal of General Recruitment Subsidiary Change of year end Multi Group Plc ("Multi" or "the Company"), the specialist healthcarerecruitment group, is pleased to announce the disposal ("the Disposal") of itsnon-core general recruitment subsidiary Berry Recruitment Limited ("BRL") to thesubsidiary's management team. Multi has agreed to sell the entire issued share capital of BRL to AldridgeRecruitment Limited, a company formed for the purpose (the "Purchaser"). Theoverall value of the transaction to Multi is estimated to be £1.87m, whichfigure includes the cash consideration of £500,000 and the £1.37m of BRL'sliabilities being assumed by the Purchaser. Of the cash consideration, £250,000 is to be paid on or before 24 March 2006 andthe balance, which has been secured by a charge over various securities and by apersonal guarantee from Antony Berry, the founder of BRL, is payable on thefirst anniversary of completion. These monies will be applied to provide workingcapital for the remainder of the Multi Group. Unaudited management accounts indicate that during the approximate nine monthperiod of Multi's ownership of BRL during the year to 31 December 2005, BRLrecorded revenues of £6.5 million on which it is expected to report a lossbefore taxation of approximately £300,000. As part of the arrangements, Multi has agreed to release Antony Berry fromcertain of his obligations as warrantor arising pursuant to the share purchaseagreement entered into between him and Multi on 7 March 2005 concerning Multi'soriginal acquisition of Berry Recruitment Holdings Limited, of which BRL was asubsidiary. Also as part of the arrangements, all existing obligations on Multi to paydeferred consideration to the vendors of Berry Recruitment Holdings Limited havebeen terminated. Related Parties Transaction Antony Berry currently owns 20,000,000 ordinary shares in the capital of Multiand is also beneficially interested in 50% of the ordinary share capital of thePurchaser. Given the nature and extent of Antony Berry's shareholding in bothMulti and the Purchaser, the Disposal is considered, for the purposes of the AIMRules, to be a transaction with a related party. The directors of Multi, havingbeen so advised by Corporate Synergy, consider the terms of the disposal to befair and reasonable insofar as shareholders of the Company are concerned. Change of year end Following its disposal of BRL and its recent acquisition of Global Medics, Multiis to change its year end date from 31 December to 31 March. This change willensure that results reported in the future will more accurately reflect thecomposition and focus of the Group. Commenting on the transaction Multi's Executive Chairman Oliver Cooke said "The sale of Multi's general recruitment business to its management team is apositive achievement for the Group; it allows us to dispose of a loss makingsubsidiary whilst increasing the Directors' focus on our successful corebusinesses in the Medical and Care sectors." Enquiries to: Oliver Cooke, ChairmanMulti Group Plc Tel: 08701 602 901 William VandykCorporate Synergy Plc Tel: 020 7448 4400 Emma Kane/Miranda GoodRedleaf Communications Ltd Tel: 020 7955 1410 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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