£6.6m disposal of Powerminste

RNS Number : 5676O

Gleeson(M J)Group PLC

30 June 2010

 



30 June 2010

 

M J GLEESON GROUP PLC

£6.6m disposal of Powerminster Gleeson Services Limited and its subsidiary Manchester Energy Company Limited (together "Powerminster")

and Board Changes

Gleeson (GLE.L), the urban regeneration and strategic land specialist, announces the disposal of Powerminster to Morgan Sindall Group plc, the UK construction and regeneration group, for a cash consideration of £6.6m.

Powerminster provides planned and responsive repairs and maintenance services, largely for social housing bodies (RSLs and Housing Associations) and local authorities through contracts and long term PFI agreements. Its main office is situated in Sheffield and it operates throughout England, with approximately 190 employees.

Powerminster generated an operating profit of £1.0m in the year to 30 June 2009 on turnover of £18.7m. As at 30 June 2009, Powerminster had gross assets of £7.1m.

Darrell Fox has held the position of Powerminster Finance Director since December 1997, having joined Powerminster as Financial Controller in August 1996.

Dermot Gleeson, Chairman, said "I am delighted that we have found a purchaser for our highly respected Powerminster business. The sale provides good value for our shareholders.  In addition, Morgan Sindall, through its affordable housing division Lovell, will offer Powerminster a wider platform to grow and broaden its social housing activities."

The sale proceeds will increase Gleeson's existing cash reserves.

Gleeson expects to issue its Preliminary Announcement for the year to 30 June 2010 on 23 September 2010.

Following the sale of Powerminster, which completes the Group's withdrawal from its contracting operations in the construction sector, Gleeson announces the following changes:

Retirement of Chris Holt as Group Chief Executive

Chris Holt, Group Chief Executive, will retire from the Board with effect from 30 September 2010. Dermot Gleeson said: "The Board has accepted, with regret, Chris's suggestion that the successful sale of Powerminster makes it an appropriate time for him to stand down. He has been a magnificent and immensely professional CEO and I and my colleagues owe him a huge debt of gratitude".

Appointment of Alan Martin as Chief Operating Officer

Alan Martin, 44, will continue as Group Finance Director, but will also take up, with effect from 1 October 2010 the role of Chief Operating Officer with responsibility for Human Resources, the Company Secretariat, Internal Audit and IT.

 

Appointment of Jolyon Harrison as a Director of M J Gleeson Group PLC

Jolyon Harrison, 62, who, since November 2009, has been Managing Director of Gleeson Regeneration & Homes will be appointed to the Group main Board with effect from 1 July 2010.

Prior to joining Gleeson, Jolyon Harrison had a successful career in housebuilding in the North of England spanning over 40 years.  From 1995 to 2007 he was the Chairman of Chesterfield-based Pelham Construction/NorthCountry Homes Group.

Jolyon is currently Non-executive Chairman of both York Housing Association and J D Plastics & Rooflines.  He is also Yorkshire Regional Chairman of the Home Builders Federation. 

Dermot Gleeson, Chairman, said: "Since he joined the Group in November 2009, Jolyon Harrison has achieved a major transformation of Regeneration & Homes, significantly increasing its potential for profitable growth.  Housing development is now the Group's core activity and the Board will benefit greatly from his expertise and experience".

Jolyon Harrison, together with his connected persons, holds 1,055,450 Ordinary shares in M J Gleeson Group plc representing 2% of the Company's issued share capital.

Save as disclosed above, there are no details to be disclosed under paragraph 9.6.13R of the Listing Rules.

Both Alan Martin and Jolyon Harrison will report to the Chairman, Dermot Gleeson, as will the Managing Directors of Gleeson Strategic Land and Gleeson Capital Solutions.

Enquiries:
Sale of Powerminster:
M J Gleeson Group PLC	01252 360 302
Chris Holt (Chief Executive)
Alan Martin (Finance Director)
DC Advisory Partners Limited
Jonathan Arrowsmith	020 7856 0917
Board Changes:
M J Gleeson Group PLC
Dermot Gleeson (Chairman)	01252 360300

 

END

 

 

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