Birse Group PLC - Disposal

RNS Number:0074A
Birse Group PLC
29 October 1999




                       Birse Group plc ("Birse")

                       Disposal of non-core assets

             Statement re: BPH Equipment Limited ("BPH")


The board of Birse announces today the sale of BPH's offshore equipment
hire and diesel engine refurbishment division, based at Aberdeen, ("the
Business")to Rentair plc ("Rentair") for a consideration of #2.5 million.

The Business is engaged in the hiring of specialist equipment for
offshore oil and gas exploration and maintenance, and diesel engine
refurbishment. The assets sold include, inter alia, the hire fleet and
trading contracts together with a property in Aberdeen. BPH will retain
the liabilities relating to the Business which existed at completion. All
staff and employees engaged within the Business will transfer to Rentair.

The assets sold had a net book value of #2.0 million as at 30 April 1999
after adjusting for additions and disposals since that time. The business
generated an operating profit of #142,000 on turnover of #2.6 million in
the year ended on that date.

Birse received #2.45 million of the consideration in cash at completion
of the sale, the effective date of which was 31 October 1999. The
remaining consideration of #50,000 is retained to be applied against
certain costs that may arise within six months after completion with any
unutilised balance returned to Birse at that time.

The sale of the Business reflects Birse's intention to dispose of its
non-core assets, which in this financial year has so far seen the sale of
an investment property in Epping for #5.1 million and land at its
Warrington development site for #1.1 million. The #2.45 million initial
proceeds from this disposal will be used to repay bank debt.

Enquiries:

Birse Group plc    01652 633222
Peter Watson       Chief Executive
Martin Budden      Finance Director



Financial Dynamics 0207 831 3113 
Tom Baldock


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