Huveaux is selling its education division for £10m in cash to Harper Collins.
Huveaux had net debt of £6.6m at the end of 2009 – similar to the level at the end of June 2009 - so this deal will leave it in a cash positive position.
The education business supplies study aids and revision guides. In the first half of 2009 the business generated £4.1m in revenues and it made an operating profit of around £200,000 before head office expenses. However, the division had net assets of £22.4m at the end of 2008, although much of that will be goodwill. It gives an indication of how much more the division cost to acquire.
Huveaux will release its 2009 figures on 22 March.
The disposal will enable Huveaux to concentrate on its political division. It generated revenues of £7.22m in six months to June 2009 and made a bigger contribution to profit than the education division. The overall group interim loss was £138,000. The second half is always better.
At 9p a share, up 0.75p on the day, Huveaux is valued at £13.7m.
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