ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

NBB Norman Broadbent Plc

10.50
0.75 (7.69%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Norman Broadbent Plc LSE:NBB London Ordinary Share GB00B3VF4Y66 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.75 7.69% 10.50 10.00 11.00 10.50 9.75 9.75 497,638 12:39:09
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Business Consulting Svcs,nec 8.7M -338k -0.0056 -18.75 6.38M

Norman Broadbent Plc Divestment of stake in Social Media Search

30/12/2016 10:36am

UK Regulatory


 
TIDMNBB 
 
30 December 2016 
 
                             Norman Broadbent plc 
 
                     ("Norman Broadbent" or the "Company") 
 
                  Divestment of stake in Social Media Search 
 
The board (the "Board") of Norman Broadbent (AIM: NBB) - a provider of time 
efficient, cost effective Board & Executive Search, Senior Interim Management, 
Solutions, Insight and Leadership Consulting services to companies ranging from 
established corporations to high-growth innovators - announces that the Company 
has today divested of its 51% interest in its subsidiary, Social Media Search 
Limited ("SMS") to Adam Gordon Limited, a company 100% owned by Adam Gordon, 
the only other shareholder in SMS (the "Divestment"). 
 
In recent years, the Company and its subsidiaries (collectively the "Group") 
have undergone a period of strategic refocusing and restructuring. The Board 
has taken this opportunity to divest of its interest in SMS and focus on the 
Group's core businesses of Executive Search, Interim Management and NB 
Solutions. 
 
In the year ended 31 December 2015, SMS had audited revenues totalling GBP 
411,000, net liabilities of GBP599,000 (including net intercompany liabilities of 
GBP669,000 owed to the Group companies "Intercompany Loan") and made a loss of GBP 
67,000. The Company reported in its unaudited interim results for the six 
months ended 30 June 2016, that revenues for the SMS division during H1 2016 
had increased by 46% to GBP0.3m (H1 2015: GBP0.2m). 
 
As of 30 November 2016, the Intercompany Loan stood at GBP652,909, the value of 
which the Company has agreed to write off  as part of the Divestment. Receipt 
of the full proceeds, as outlined below, will result in no material impact on 
the net worth of the Group.  Under the terms of the Sale and Purchase Agreement 
("SPA") entered into between the Company, Adam Gordon Limited and Mr Gordon, 
Norman Broadbent will receive a cash consideration of GBP325,000 ("Cash 
Consideration"), of which GBP32,500 is payable within 90 days of entering into 
the SPA and the remaining amount is to be satisfied by 60 monthly payments of GBP 
4,875 (the "Deferred Consideration Period"), such payments may be accelerated 
in certain circumstances. The Company shall also be entitled to receive 10% of 
the operating profits of SMS (or any entity with which SMS shall merge or 
amalgamate with) generated during the Deferred Consideration Period (the 
"Profit Share"). 
 
In the event that SMS enters into an agreement during the Deferred 
Consideration Period to be sold (in whole or in part) to a third party, 
wound-up or listed on a stock exchange (an "Event"), SMS shall pay to Norman 
Broadbent, upon completion of such an Event, an additional consideration amount 
equivalent to 51% of the total of the net proceeds attributable to the Event, 
less the Cash Consideration and the Profit Share. Under the terms of the SPA, 
Norman Broadbent may, until 31 March 2017, advance an unsecured and interest 
free loan of up GBP10,000 to SMS, such loan being repayable in full by 30 June 
2017. 
 
The Board intends to use the proceeds of the Divestment for general working 
capital purposes. 
 
Mr Gordon is an existing director of SMS and the Divestment is deemed to 
constitute a related party transaction under the AIM Rules for Companies. The 
directors of Norman Broadbent, having consulted with the Company's nominated 
adviser, Allenby Capital Limited, consider the terms of the Divestment to be 
fair and reasonable insofar as the Company's shareholders are concerned. 
 
For further information, please contact: 
 
Norman Broadbent plc 
Mike Brennan/James Webber                                         020 7484 0000 
 
Allenby Capital 
Nick Naylor/Liz Kirchner                                                 020 
3328 5656 
 
For further information visit www.normanbroadbent.com 
 
                                   -- ENDS-- 
 
 
 
END 
 

(END) Dow Jones Newswires

December 30, 2016 05:36 ET (10:36 GMT)

1 Year Norman Broadbent Chart

1 Year Norman Broadbent Chart

1 Month Norman Broadbent Chart

1 Month Norman Broadbent Chart

Your Recent History

Delayed Upgrade Clock