Business
Disposal
Disposal.
About this update from Rtc Group Plc
[{"type":"text","content":"\n ATA Group PLC\n28 July 2006\n\n\n28th July 2006\n\n\n\n ATA Group Plc ('ATA')\n\n\n Sale of the business of Gem-Weld (UK) Limited\n\n\n\nThe Directors of ATA are pleased to announce the following disposal:-\n\n\nCompletion took place today of the sale of the assets and goodwill of Gem-Weld\n(UK) Limited for a cash consideration of £264,000 payable in five instalments\nover fifteen months.\n\n\nMr Bill Douie, Chairman of ATA Group Plc, commented\n\n\n'The provision by the private sector of rail Track Welding Services was thrown\ninto turmoil following the return of maintenance of the infrastructure of the\nNational Rail Network to Network Rail. Since that time there have been periods\nof feast and famine in demand for such services and during a period of low\ndemand in 2004 ATA Group purchased Gem-Weld (UK) Limited. During late 2004 and\n2005 costly re-organisation of the Company took place and satisfactory business\nflows and trading results were enjoyed for approximately twelve months to 31st\nMarch 2006.\n\n\nAt the beginning of the Network Rail budget year on 1st April 2006 demand again\nreduced to wholly un-commercial levels, a situation which continues, and ATA\nGroup reluctantly concluded that it was not possible to provide this service\nthrough a stand-alone company.\n\n\nAccordingly the opportunity has been taken to dispose of this activity and\nterminate what has not been a successful investment for the Group. The\nconsideration will be used to further strengthen the Group's cash reserves.\n\n\nThis disposal allows further simplification of the Group range of core business\nactivities which are strongly focussed on the provision of recruitment and\ntraining services to the manufacturing, construction and transport industries\npredominantly in the UK.'\n\n\n\nContacts:\nBill Douie, Chairman, ATA Group Plc\nAndrew Bailey, Group Managing \nDirector ATA Group Plc Tel: 01454 310 069\nPaul McLoughlin, Rail Division \nManaging Director, ATA Group Plc\n\n\n\n\n This information is provided by RNS\n The company news service from the London Stock Exchange\n \n ","length":2313,"tagName":"div"}]