Business
Disposal
Disposal.
About this update from Iomart Group Plc
[{"type":"text","content":"\n RNS Number : 6649Y Iomart Group PLC 09 July 2008 \n \niomart Group plc ('iomart' or the 'Company')\n\nDisposal of Ufindus\n\niomart Group plc the provider of managed hosting, co-location and business continuity services announces the sale of its subsidiary Ufindus Limited ('Ufindus'), a leading internet directory services company to British Telecommunications plc ('BT') for a total cash consideration of £20 million.\n\nThe decision to dispose of Ufindus followed a strategic review by the board, in which it became clear that the operation was non-core to iomart's hosting and managed service strategy moving forward. After considerable interest from trade buyers, the decision was taken to find a new long term parent for Ufindus. Under the agreement iomart will continue to provide BT with web-hosting services for Ufindus. \n\nUfindus was founded by iomart in 2002 and has grown to be one of the UK's largest new media directories businesses providing listing and web-sites for small and medium sized enterprise customers in the UK. Ufindus' operating profit for the year ended 31 March 2007 was £1,457k (2006 operating loss of £37k) on revenues of £14,095k (2006 £10,946k), with net assets at 31 March 2007 of £2,658k (2006 £1,199k). This disposal is expected to generate a profit of £15 million before goodwill adjustments.\n\nThe proceeds of the sale will be used largely to assist with the funding of iomart's expansion of its hosting and managed service operations. The Directors are confident that the experience and expertise available within the Group will enable it to build a successful hosting and managed service business. \n\nOf the total cash consideration, the Company is giving certain warranties and indemnities in connection with the disposal and £2 million of the consideration is being placed into escrow, £1 million to be released after 6 months and the remainder to be released after 24 months. \n\niomart expects to announce its preliminary results for the year ended 31 March 2008 on 29th July.\n\n\nAngus MacSween, CEO of iomart said:\n\n'This disposal of Ufindus, in this more uncertain economic enviro...