News blog

Work Group

• BY: Andrew Hore |
• POSTED: 26/06/2013 |

Recruitment services provider Work Group has sold its Armstrong Craven business to Isis Equity Partners for an initial £1.8m in cash.

The disposal perked up the share price which rose 1p to 8.5p and it has nearly doubled since the 2012 results were published.

A further £300,000 is deferred and Work Group will retain some of the assets. Even so, there is going to be a tax liability of £490,000, which will make a dent in the company’s cash. There was £389,000 in the bank at the end of 2012. The holding value of the business reduced in the 2012 accounts, which turned a £266,000 profit into a £2.68m loss. The remaining NAV was £2.66m. 

Management believes it needs to focus its resources on the remaining operations of the group.

Finance director Justin Maslen is leaving the company. Interim results will be published in mid-August.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2013_45.pdf