Worthington Group PLC
3 April 2000
Worthington Group plc announce today that on Friday, 31 March 2000, it sold the
worsted weaving operation of S Jerome & Sons based in Shipley, to OMC
International (Fine Fabrics) Limited, Huddersfield, makers of worsted fabrics.
The combined business will produce economies of scale and competitive advantage
which will provide better service for the enlarged customer base.
The worsted industry has experienced severe difficulties in recent times and the
merging of the two operations will provide a stronger business.
As previously announced, Worthington Group plc has already sold the Shipley site
and this transaction completes the withdrawal from worsted weaving and obviates
the need to relocate, as was earlier envisaged. The Shipley site is now being
run down quickly and other assets, looms etc., have been sold. The
consideration for the transaction is £600,000 which equates to certain assets
which are being acquired by OMC, who will also be acquiring the main management
team and directors formerly engaged by S Jerome & Sons Limited.
In addition to the above, Worthington Group plc also disposed on Friday of their
Kahan Bros sewing thread wholesaler division to Sewmaster (UK) Limited, a
company controlled by Gavin Kaye, the Group's former Finance Director, for a
consideration equivalent to the book value of Kahan Bros' stock and plant and
machinery as at today's Completion Date. A payment on account of £50,000 will
be made today with a further payment of £70,000 on 30 April 2000 and the balance
payable in thirteen monthly instalments commencing on 1 June 2000. The book
value of the relevant assets at 29 February 2000 was £240,000. Sewmaster will
also take over the debtors of the business as at 30 April 2000 for book value.
The proceeds of these sales, along with those announced last week, will be
applied to further reduce the Group's borrowings. Including the proceeds from
the Rights Issue, the Group has realised £12.9m in cash during the 1999/2000
financial year which ended last Friday.
Worthington Group plc is pursuing a policy of the disposal of certain textile
activities to reduce gearing and to prepare itself for a new corporate strategy
which is currently being evaluated.
For further information contact:
John Taylor, Group Chief Executive
Worthington Group plc
Telephone No: 01274 200700
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