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Autoclenz Holdings

  • BY: Andrew Hore |
  • POSTED: 06/11/2012 |

Autoclenz Holdings is selling its business to management for £4m and becoming a cash shell called AimShell.

The four main executives, including main board directors Grahame Rummery and Trevor Clingo, will receive a bonus of 40% of their annual salary on the disposal of the car valeting, vehicle preparation and deep cleaning services provider. The other investors in the buy out are Adam Reynolds and Paul Foulger.

Trading has been tough but the underlying operating profit should still be around the £1.27m reported for 2011. It has been difficult to expand via acquisition because of the weak share price. Management also says that competitors can gain knowledge of the business through the information it has to report to the stock market.

The share price rose 3.75p to 35.5p, valuing Autoclenz at £3.69m. Autoclenz floated at 125p a share in December 2005. At the end of June 2012, Autoclenz had a net asset value of £12.2m, or £3.1m excluding goodwill.

Following the disposal, Autoclenz will have £3m in cash and 7% loan notes of £1m, which are repayable over a three year period. The first payment will be £333,333 in one years time followed by quarterly repayments for two years.

The new investing policy is deliberately vague but the main focus will be on acquiring a UK-based growth business.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2012_37.pdf

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