Electric Word PLC Sale of Optimus Professional Publishing Limited (1070O)

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RNS Number : 1070O

Electric Word PLC

02 November 2016

2 November 2016

Electric Word Plc (the "Company")

Sale of Optimus Professional Publishing Limited

The Directors of Electric Word plc are pleased to announce the sale of the Company's subsidiary, Optimus Professional Publishing Limited ("Optimus") to Prospects Education Services Limited ("Prospects").

Optimus is part of the Education division of the Company and provides live events and online training for leaders in UK schools to support staff development and school improvement.

Consideration comprises GBP1,512,501, which has been paid in cash on completion. A cash balance of GBP613,113 was left in the business. Both the consideration and cash left in the business are subject to adjustment through a completion accounts process at a later date.

In the year ended 30 November 2015, Optimus made a loss before tax of GBP1,019,649 (which includes a charge of GBP725,588 towards Company central overheads, and a management charge to the Company of GBP177,500) on turnover of GBP2,908,112. The value of the gross assets of Optimus at 30 November 2015 was GBP2,306,398.

The Directors are grateful to the employees of Optimus for their hard work in recent years. The Directors regard this disposal as an important step towards simplifying the Group, reducing operating losses and the risks arising from an investment intensive business, and support the Group's ability to make a capital return to shareholders. The Board continues to review the options available to them.

Julian Turner, CEO of Electric Word plc, says: "We are grateful to the employees of Optimus for their hard work and are delighted that Optimus will be joining Prospects after 16 years as part of Electric Word. It is good news for both businesses and for our many customers among UK schools. We wish the staff and business every success for the future."

Nick Bell, Chief Executive of Prospects, comments: "We are delighted to welcome Optimus Education colleagues into the Prospects family. As one of the largest employee owned companies in the UK and a Leader in Diversity, we are committed to offering those that join us the opportunities to innovate and drive our business forward."

For further enquiries please contact:

Julian Turner, Chief Executive, Electric Word 020 7265 4170

Andrew Potts, Panmure Gordon 020 7886 2500

This announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

Notes to Editors

Electric Word plc is a specialist media group supporting professionals in the fields of Sport and Education, largely through digital subscription services and bespoke research and consultancy. Our aim is to provide our customers with decision-critical data and market-leading analysis and expertise.

About Prospects

Prospects Education Services Limited is part of the Prospects Group which provides tailored education, employment, training and care products and services for people at all stages of life. Each year Prospects inspires more than 500,000 people to develop their potential and transform their lives. More than 1,400 professional and skilled colleagues provide practical support to the local communities they are based in across the UK and internationally. Prospects is one of the largest employee owned companies in the UK. It is also a Leader in Diversity and ranked in the top 100 index by the National Centre for Diversity.

For more information please visit: www.prospects.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

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November 02, 2016 04:00 ET (08:00 GMT)