Disposal of Tribal Resourcing

RNS Number : 9322A

Tribal Group PLC

09 February 2011

 



Tribal Group plc

Disposal of Tribal Resourcing

Tribal Group plc ("Tribal"), a leading provider of public sector services in the UK and internationally, announces the disposal of the trade and assets of the Advertising and E-Solutions business streams of Tribal Resourcing Limited ("Tribal Resourcing") to TMP (UK) Limited ("TMP").

Tribal Resourcing is one of the largest recruitment solutions providers to the UK public sector. Its services are based around the attraction, selection, development and retention of staff across its public sector client base.

In the audited accounts for the year ended 31 December 2009, Tribal Resourcing had gross assets of £15.8m and it made an operating profit, before goodwill impairment, of £301k on turnover of £62m.  Based on unaudited management accounts, Tribal Resourcing made an operating profit of £37k in the year ended 31 December 2010 on turnover of £39m and the business had gross assets of £10.8m.

The disposal follows the announcement in March 2010 that Tribal would explore strategic options for each of its three Support Services businesses and this transaction represents the final step in concluding the sale of these businesses.

Under the terms of the disposal, Tribal has sold the business carried on by Tribal Resourcing to TMP for an initial consideration of £1. In addition, TMP will pay to Tribal 20% of the revenue for three years following completion from existing clients for the Advertising and E-Solutions business streams up to a maximum deferred consideration of £6m.

Tribal plans to use the proceeds of the disposal to reduce group indebtedness.

End

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 around 1,800 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.

 

END

 

 

DISBKLFBFLFBBBE