Business
Disposal of Roof Truss
Disposal of Roof Truss.
About this update from Northern Bear Plc
[{"type":"text","content":"\n \nRNS Number : 3144H Northern Bear Plc 26 May 2011 \n \n\n26 May 2011\nNorthern Bear PLC\n(\"Northern Bear\" or the \"Group\")\n \nDisposal of The Roof Truss Company (Northern) Limited\n \nThe Board of Directors of Northern Bear (the \"Board\") announces that the Group has today entered into an agreement to dispose of, with immediate effect, its entire interest in one of its operating subsidiaries, The Roof Truss Company (Northern) Limited (\"Roof Truss\"), to Kevin Gray, the current Managing Director and a former proprietor of Roof Truss (the \"Disposal\"). \n \nDisposal of Roof Truss\n \nThe Disposal follows a review by the Board of the operating performance of Roof Truss, as part of a wider review of the Group's operations. The total consideration payable by Mr Gray of £865,744 in respect of the Disposal is to be satisfied as follows:\n \n- £525,000 payable in cash on completion of the Disposal (\"Completion\");\n- £114,077, payable in cash within 1 business day of Completion; and\n- £226,667, payable on deferred terms over 10 years and in equal bi-annual instalments from the date of Completion. \n \nRoof Truss designs, manufactures and fits trussed rafters for all types of houses across the North East of England. As at 31 March 2011, Roof Truss had unaudited net assets of £463,000 and made an unaudited profit before tax of £24,000 for the year ended 31 March 2011. The net assets subject to the transaction are £1,025,000, as the Group is retaining ownership of an inter company creditor balance of £343,000 and an overdraft of £219,000.\n \nThe Board considers Roof Truss's operations to be non-core to the remainder of the Group and intends to apply the net proceeds to the development of the Group's core support services businesses. The Board believes that the Disposal is in the best interest of shareholders and leaves Northern Bear better placed to make operational improvements to its core businesses going forwards.\n \nPDMR Dealing\n \nMr Gray has today sold 615,548 ordinary shares of £0.01 each in the capital of Northern Bear (\"Ordinary Shares\") representing approximately 3.2 per cent. of Northern Bear's issued share capital. Following this disposal, Mr Gray is no longer interested in any Ordinary Sh...