Disposal of Education Divisio

RNS Number : 0761I

Huveaux PLC

04 March 2010

 



Huveaux plc

For immediate release

4 March 2010

Huveaux plc

("Huveaux" or the "Company")

Sale of Education Division

The Board of Huveaux (the "Board") is pleased to announce that it has today signed a conditional contract for the sale of the entire share capital of Letts Educational Limited and Leckie & Leckie Limited and the business and assets of Lonsdale (together the "Education Division") for a cash consideration of £10.0 million, payable in full upon completion, to Harper Collins Publishers Limited (the "Disposal"). 

The Directors consider that the Disposal represents an opportunity to divest the business to a leading specialist with a commitment to the education sector on terms which are attractive to Huveaux when measured in the context of the recent performance of the Education Division.

The Disposal is conditional, inter alia, on the completion of employee consultations and is expected to complete on or around 19^th March 2010.

The proceeds of the sale will be used to repay all of the Company's outstanding debt.  As at 31 December 2009, Huveaux had net debt of £6.6 million.

The Education Division supplies study aids and revision guides in the UK across all subjects and stages of the UK schools curriculum.  In the six months ending 30 June 2009, the Education Division generated revenue of £4.1 million (year ending 31 December 2008 - £10.7 million) and earnings before interest, tax, depreciation and amortisation from operations of £0.2 million (Year ending 31 December 2008 - £2.3 million).  The net assets attributable to the Education Division amounted to £22.4 million as at 31 December 2008. Further information on the trading performance of the Education Division will be included within the Huveaux Group's preliminary statement of audited results for the year ended 31 December 2009, scheduled for release on 22^nd March 2010.

Following the Disposal, the Huveaux group comprises solely the Political Division, the UK and EU market leader in political publishing, information and communication.  The Directors will update shareholders on the results of and expectations for the Political Division within the preliminary results statement.

Enquiries:

Huveaux plc Kevin Hand Non-Executive Chairman Gerry Murray Chief Executive Officer Rupert Levy Group Finance Director

Telephone 020 7811 5026

KPMG Corporate Finance (financial adviser) David Elms Susan Walker

Telephone 020 7311 1000

Brewin Dolphin Limited (nominated adviser) Sandy Fraser

Telephone 0845 213 2072

 

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