Business
£6.6m disposal of Powerminste
£6.6m disposal of Powerminste.
About this update from Mj Gleeson Plc
[{"type":"text","content":"\n RNS Number : 5676O Gleeson(M J)Group PLC 30 June 2010 \n \n\n30 June 2010\n \nM J GLEESON GROUP PLC\n \n£6.6m disposal of Powerminster Gleeson Services Limited and its subsidiary Manchester Energy Company Limited (together \"Powerminster\") \nand Board Changes\n \nGleeson (GLE.L), the urban regeneration and strategic land specialist, announces the disposal of Powerminster to Morgan Sindall Group plc, the UK construction and regeneration group, for a cash consideration of £6.6m.\n \nPowerminster provides planned and responsive repairs and maintenance services, largely for social housing bodies (RSLs and Housing Associations) and local authorities through contracts and long term PFI agreements. Its main office is situated in Sheffield and it operates throughout England, with approximately 190 employees.\n \nPowerminster generated an operating profit of £1.0m in the year to 30 June 2009 on turnover of £18.7m. As at 30 June 2009, Powerminster had gross assets of £7.1m.\n \nDarrell Fox has held the position of Powerminster Finance Director since December 1997, having joined Powerminster as Financial Controller in August 1996.\n \nDermot Gleeson, Chairman, said \"I am delighted that we have found a purchaser for our highly respected Powerminster business. The sale provides good value for our shareholders. In addition, Morgan Sindall, through its affordable housing division Lovell, will offer Powerminster a wider platform to grow and broaden its social housing activities.\"\n \nThe sale proceeds will increase Gleeson's existing cash reserves.\n \nGleeson expects to issue its Preliminary Announcement for the year to 30 June 2010 on 23 September 2010.\n \nFollowing the sale of Powerminster, which completes the Group's withdrawal from its contracting operations in the construction sector, Gleeson announces the following changes:\n \nRetirement of Chris Holt as Group Chief Executive\n \nChris Holt, Group Chief Executive, will retire from the Board with effect from 30 September 2010. Dermot Gleeson said: \"The Board has accepted, with regret, Chris's suggestion that the successful sale of Powerminster makes it an appropriate time for him to stand down. He has been a magnificent and immensely professional CEO and I and my colleagues owe him a huge debt of gratitude\"....