Disposal of Kindred business

RNS Number : 6597U

Tribal Group PLC

20 October 2010

 



Tribal Group plc

Disposal of Kindred business

Tribal Group plc (Tribal), a leading provider of public sector services in the UK and internationally, has sold the trade and assets of Kindred Agency Limited (Kindred) for cash consideration of £1 to Weald Lane Limited, a company formed by Kindred's senior management team. All of Kindred's staff will be transferring with the business.

Kindred is a communications agency that specialises in advertising, PR, branding and design, digital and social media work. The business operates predominantly in the UK and employs approximately 50 staff based in London.

In the unaudited accounts for 31 December 2009, Kindred had gross assets of £5.3m (2008 audited: £14.6m) and it made a loss before tax (after a goodwill and investment impairment charge of £8.6m) of £9.2m (2008 audited: profit of £0.6m) on a turnover of £9.9m (2008 audited: £8.7m). During 2010, the business has seen a significant fall in activity following the general election in May.

The sale follows the announcement in March 2010 that Tribal would explore strategic options for each of its three support services businesses. The disposal represents a further step in realising Tribal's strategy of focusing on its core activities in education, health and government.

Under the terms of the disposal, Tribal has sold the business carried on by Kindred to Kindred's senior management for a total consideration of £1. In addition, Tribal will provide £605,000 in cash to Weald Lane Limited on completion and up to a further £190,000 between completion and 1 May 2011.

Commenting on the disposal of Kindred, Peter Martin, Chief Executive of Tribal, said:

"We are pleased to have completed the sale of Kindred and we wish the management well in the future."

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For further information, please contact:  

Tribal Group plc                                                                  Telephone: [phone]  

Peter Martin, Chief Executive  

Steve Breach, Group Finance Director  

Weber Shandwick Financial                                              Telephone: [phone]

Nick Oborne

Stephanie Badjonat

Clare Thomas                                        

Editors' note:  

Tribal is a leading public sector services company.  We provide service delivery, advisory and technology solutions focused on improving the quality and effectiveness of public services in the UK and internationally. Tribal's core markets are education, health and government.  

Our people are sector experts and we work in partnership with a wide range of organizations, including schools, hospitals, local authorities, housing associations and government departments. Tribal has over 2,000 staff and our work spans 40 countries across the world. Tribal's shares are quoted on the London Stock Exchange (TRB). Links: Tribal Group plc website: www.tribalgroup.com.

This Statement has been prepared for and is addressed only to our shareholders as a whole and should not be relied on by any other party or for any other purpose. Tribal, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

This Statement may contain forward-looking statements. Any forward-looking statement has been made by the directors in good faith based on the information available to them up to the time of approval of this Statement and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. To the extent that this Statement contains any statement dealing with any time after the date of its preparation, such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur and therefore the facts stated and views expressed may change. Tribal undertakes no obligation to update these forward-looking statements.

 

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