Disposal

RNS Number:9050W
Gourmet Holdings PLC
21 May 2007

Gourmet Holdings PLC

("Gourmet" or the "Company")



Disposal of the Bel & Dragon chain of four pub/restaurants to Ultimate Leisure
Group PLC ("Ultimate Leisure")


Following the decision by the Board of Gourmet, announced in September 2006, to
dispose of its pub/restaurants to focus on its Richoux business, the Company is
pleased to announce that it has sold to Ultimate Leisure its interests in the
four Bel and the Dragon pub/restaurants for a total cash consideration of #8.75m
payable upon completion subject to adjustment.



This follows the disposal of two unbranded pub restaurants, The Five Bells at
Stanbridge, Bedfordshire and the Talkhouse at Stanton St John, Oxfordshire to
Fuller, Smith & Turner plc in December 2006.



Completion is expected to take place shortly after the Extraordinary General
Meeting ("EGM") to be convened to seek the necessary shareholder approval for
the transaction. A circular convening the EGM will be posted to shareholders in
the near future.


Cash proceeds from the sale will be used to eliminate the Company's indebtedness
through the repayment of its bank loans.



For the financial year ended 25 June 2006, the pub/restaurants being disposed of
generated EBITDA of #0.85m. As at 7 January 2007, the pubs had a book value of
#10.8m. The loss on disposal of fixed assets of #2.0m together with costs of the
transaction will be included within the profit and loss account of the Company
for the year to 24 June 2007.



Following the sale the Company will mainly consist of four Richoux restaurants
in London located in Mayfair, Knightsbridge, Piccadilly and St Johns Wood. The
Board is mindful that the Company will be very small for a listed company and
whilst it is still actively seeking sites to expand this brand, it is also
continuously reviewing the strategic options for the best outcome for
shareholders.



Richard Scott, Chairman of Gourmet Holdings plc, said:


"The disposal of Bel and the Dragon is in line with our stated strategy and
leaves the Company predominantly operating a single brand that is performing
well.  We have cash in the bank and will continue to explore the best options
for the Company to maximise value for our shareholders."


                                                                     21 May 2007

Enquiries


Gourmet Holdings plc
Richard Scott, Chairman                                   Tel: [phone]
Andrew Guy, Managing Director                              Tel: [phone]


Arbuthnot Securities

Nick Marsh                                                Tel: [phone]

Paul Vanstone


College Hill                                              Tel: [phone]
Matthew Smallwood
Justine Warren




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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