Business
Disposal of Malvern House Ireland Limited
Disposal of Malvern House Ireland Limited.
About this update from Malvern International Plc
[{"type":"text","content":"\n \nRNS Number : 5194D AEC Education plc 07 July 2016 \n\nAEC Education Plc(\"AEC\" or the \"Company\")\n \nDisposal of Malvern House Ireland Limited\n \n \nAEC announces that it has disposed of one of its subsidiary companies, Malvern House Ireland Limited, in which it had a 55% interest in the share capital, to Oscar World Education Limited, Ireland (the \"Purchaser\"). The consideration for the disposal is €660,000 (approximately £560,000) payable in cash on completion. The Purchaser will also sign a franchise agreement for one year enabling it to use the Malvern House brand name on payment of a royalty of 2.5% of tuition fee revenue per year. In order to execute the franchise agreement, the Purchaser has agreed to pay an upfront signing fee of €45,000 (approximately £38,500) and €25,000 (approximately £21,000) as prepayment of the 2.5% annual royalty for the year to June 2017. The franchise agreement is renewable on an annual basis.\n \nThe Company had decided on the disposal to provide more focus and resources on its wholly owned London and Far East operations. \n \nMalvern House Ireland Limited, which operates an educational college in Dublin, reported losses before tax of £183,662 on revenue of £2.37 million for the year ended 31 December 2014 and based on unaudited management accounts to 31 December 2015 will report profit before tax of £241,555 on turnover of £2.88 million for the year ended 31 December 2015.\n \nThe proceeds of the disposal will be used to supplement the Group's cash resources. The disposal will have no impact on the other operations of the Group. \n \nENDS\n \n \nFor further information, please contact:\n \nAEC Education Plc\nLiam Swords, Chairman\nTel: 07725 836811\n \nWH Ireland Limited (NOMAD & Broker)\nMike Coe / Liam Gribben\nTel: 0117 945 3470 \n\nThis information is provided by RNSThe company news service from the London Stock Exchange END DISUGUMGMUPQUMM\n ","length":3268,"tagName":"div"}]