Disposal

Journey Group plc

Disposal of Media on the Move Limited for £1,175,000 in cash

Journey Group plc ("Journey" and together with its subsidiaries the "Group"), a leading provider of in-flight products and catering services to the international airline and travel industry, today announces that it has completed the disposal of its media services business, Media on the Move Limited ("Media" or the "Company") for a consideration of £1,175,000 payable in cash and is subject to adjustment in respect of normal working capital and net cash or debt based on completion accounts.

Media is a media management company specialising in marketing and distribution services for the travel industry, providing an end to end solution for all onboard and lounge print media requirements. For the year ended 31st December 2010, Media's turnover was £2.6 million and its profit on ordinary activities before deducting Group charges and taxation amounted to £93,676.

The Company has been sold to Menzies Distribution Limited, a division of John Menzies plc. Of the provisional consideration, £940.000 is receivable today and the remaining £235,000 is expected to be received in three months time on 7th October 2011. The consideration will be adjusted upwards if, based on completion accounts, net cash remains in the Company or working capital is greater than its normal level and reduced if there is net debt or working capital is lower than its normal level. The maximum net additional consideration arising from such adjustments is fixed at £160,000.

The proceeds will initially be used to reduce debt, putting the Group into a net cash position, and subsequently applied in the pursuit of growth opportunities in the Group's in-flight catering activities in the USA.

Stephen Yapp, Executive Chairman said "The price achieved for the disposal of Media on the Move reflects the significant operational progress made in this business over the last few years.

This is an important next step in Journey's strategy of disposing of non-core businesses. The cash received, together with the new banking facilities announced in May 2011, strengthens the resources available to the Group to invest in growth opportunities that can generate superior returns".

Journey Group plc contacts: 

Stephen Yapp

+44 (0)20 8606 2000

[email protected] 

Carl Fry

 +44 (0)20 8606 2000  

[email protected]

Peel Hunt LLP (Nominated Adviser & Broker) 

+44 (0)20 7418 8900  

Daniel Harris