Business
IMS and disposal
IMS and disposal.
About this update from Norcros Plc
[{"type":"text","content":"\n RNS Number : 9474Y Norcros PLC 14 July 2008 \n \n\n\nNorcros plc\n(\"Norcros\", the \"Group\" or the \"Company\")\n\n\nDisposal of investment and Interim Management Statement\n\n\nNorcros, the home consumer products group, is today pleased to announce the sale of its 18.51 per cent interest in H & R Johnson (India) Limited (\"HRJ India\") and also takes this opportunity to update the market by issuing its Interim Management Statement for the 13 week period from 31st March 2008 to 29th June 2008, ahead of its Annual General Meeting to be held at 11.00am on Thursday 17th July at the Stanneylands Hotel, Stanneylands Road, Wilmslow, Cheshire, SK9 4EY. \n\nDisposal of investment in HRJ India\nThe Group announces that it has completed the sale of its 18.51 per cent interest in H & R Johnson (India) Limited (\"HRJ India\") for a consideration of £3.7 million, net of costs and taxes. The purchaser is HRJ India by means of a share buyback programme.\nHRJ India is primarily involved in the manufacture and distribution of ceramic tiles in India. In the Group's accounts for the year ended 31 March 2008, HRJ India was accounted for as a trade investment and made no financial contribution (2007: nil). \nTerms of the transaction\nThe cash consideration paid was £3.7 million, net of costs and taxes (£4.1 million gross). \nThe carrying value of the investment in the Group's balance sheet as at 31 March 2008 was £2.7 million. A profit on disposal of £1.0 million will, accordingly, be reported in the Group's financial statements for the year ended 31 March 2009. This disposal realises value from the Group's investment and reduces indebtedness and associated interest costs. The Group's net debt at the end of June 2008 was £48.5 million.\nTrading update\n\nAt our preliminary results in June, we mentioned our ongoing programme to implement cost savings and improve efficiencies across the Group. We are pleased to report that this range of cost saving measures is progressing in line with current guidance and we expect to see the benefit of these measures during the rest of this financial year and beyond. We also noted that since the year end our main markets in th...