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24th March 2009
Disposal Announcement
The Company today announces the disposal of its wholly owned subsidiary, Supporta Professional Services Limited ("SPSL") and SPSL's wholly owned subsidiary, Bay Associates Consulting Limited ("BACL") to Princely Holdings Limited ("the Purchaser") (the "Disposal').
SPSL and BACL carry out the Company's architectural and engineering consultancy operations respectively. For the year ended 31 March 2008 BACL and SPSL made a profit before tax of £97,063 and a loss before tax of £2,509,993 respectively. At 31 March 2008 BACL had net assets of £780,733 and SPSL had net liabilities of £498,227.
The maximum consideration receivable in respect of the Disposal is £408,718, payable wholly in cash. In addition, under the terms of the disposal agreement certain debts, amounting to approximately £349,000 will be paid over to the Company if they are successfully recovered by the Purchaser, thereby potentially increasing the consideration receivable. Details of the consideration structure are set out below:
£100,000 payable six months after completion;
£204,359 payable quarterly further to the collection of debts and subject to the first £100,000 being paid into an escrow account from which the Purchaser can fund dilapidations on the exercise of break clauses in leases and adjustment further to completion accounts; and
£104,359 payable on completion's first anniversary subject to adjustment further to completion accounts.
The proceeds from the sale will be used to pay down the Company's debt.
Further to the announcement made on 4 September 2008, the Board of Supporta confirms that it remains in discussions which may or may not lead to an offer to acquire the issued and to be issued share capital of the Company.
Shareholders should note however, that the approach/approaches is/are preliminary in nature and subject to a number of conditions which may or may not prove capable of being satisfied. Accordingly, no assurances can be given that a formal offer will be forthcoming or that any transaction will occur.
The full notice is available within the Investor Relations centre of this website
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