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Invox PLC (FNS)

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Monday 09 October, 2006

Invox PLC

Disposal

Invox PLC
09 October 2006



Invox plc ('Invox' or the 'Group')


Disposal of Home Gaming business


Invox plc announces that it has sold its entire interest in its Home Gaming
business for a total consideration of up to £2 million. The business is to be
acquired by DM plc ('DM'), a direct marketing group specialising in database
management and home gaming.

The Home Gaming business comprises Invox's wholly-owned subsidiaries The Winners
Club Limited and TPC Telecoms Limited, and generates revenue from the rental of
data generated via direct mail and responses to games and competitions from
premium rate lines and texts. The net assets of these companies at the date of
disposal are nil.

The consideration for the sale will consist of an initial payment of £1.0
million, payable by the issue of 7,547,170 new ordinary shares of 1 pence each
in the capital of DM ('DM Shares') based on the closing middle market price of
13.25 pence on 6 October 2006, being the last business day immediately preceding
the acquisition.

The remaining £1.0 million will be payable in further instalments of either DM
Shares or, at DM's discretion, cash, based on the profit before tax of The
Winners Club as reported for the three years ended 31 December 2009 (the '
Earn-out'). The Earn-out will be due in four tranches of £250,000, payable if
the profit before tax following acquisition exceeds: i) £1.0 million for the 12
months ended 31 December 2007; ii) £1.25 million for the 12 months ended 31
December 2008; iii) £1.25 million for the 12 months ended 31 December 2009; and
iv) £2.0 million for the 12 months ended 31 December 2009.

The Group's investment in Home Gaming is valued at £2 million in the preliminary
results for the year ending 30 June 2006. For the 12 month period ended 30 June
2006, the businesses reported turnover of £6.9 million (2005: £12.0 million) and
profit before tax of £1.9 million (2005: £5.6 million). However, Home Gaming has
been loss-making in the current year to date and trading has deteriorated in
recent months. As previously communicated to shareholders, Invox intends to
concentrate on its Broadband business and rename itself Brightview plc. Parry
Parry, the Head of the Home Gaming division, will step down from the Invox Board
at the time of sale.

Application has been made for the admission of the initial payment DM Shares to
trading on the Alternative Investment Market of the London Stock Exchange plc
and it is expected that dealings in the new ordinary shares will commence at
08.00 on 13 October 2006. These DM Shares will be subject to a lock-in agreement
which prohibits their disposal in the 18 months following the Acquisition,
except as agreed with DM's nominated advisor. Invox expects to retain its DM
Shares for the duration of this lock-in period.

Invox Chairman Stephen Hargrave said, 'In line with our preliminary results
statement to shareholders, we are completing this disposal in the belief that we
can realise a better return on the Home Gaming business as shareholders in DM
plc. Having resolved that issue we can now focus entirely on our Broadband
business, which we believe offers substantial opportunities for new growth.
After falling back earlier in the year owing to offers of apparently 'free'
broadband services by other suppliers, our new signups have recovered strongly
in the last few months: over 5,000 net new Broadband subscribers were signed up
in the quarter to 30 September 2006 taking the overall total to over 45,000. We
expect to have more than 50,000 subscribers by Christmas.

'Given the aim of continuing growth in its broadband subscriber base, we are in
negotiation with Barclays Bank plc to secure facilities consistent with that
goal. This may involve deferral of repayments envisaged under the existing
agreement.'


Enquiries

Jerry Reidy, Finance Director - 01295 201 240



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