Disposal of Interest in Joint Venture for £3.5 million in cash and Trading Update
Journey Group plc (“Journey” or together with its subsidiaries the “Group”), a leading provider of in-flight products, catering and media services to the travel and airline industry, is pleased to announce the disposal today of its 49% interest in Alpha-Airfayre Limited (“AAL”) for £3.5 million in cash.
The AAL joint venture commenced in November 2009 combining the in-flight catering operations at London’s Heathrow airport of Journey’s wholly-owned subsidiary Air Fayre Limited (“Air Fayre”) and Alpha Flight UK Limited, part of Autogrill S.p.A. Journey’s share of AAL’s loss after taxation for the 10 month period ended 31 October 2010 was £0.5 million.
The total cash realised from the disposal of Air Fayre’s activities is now £8.5 million, including the £5.0 million received on the establishment of the joint venture.
The current proceeds of £3.5 million will be used to further strengthen the Group’s balance sheet: £3.0 million will be used to repay part of the £4.5 million, three-year facility announced in September 2010 and the remainder of £0.5 million will add to the Group’s cash resources, reducing the Group’s net debt to £0.2 million on a pro-forma basis as at 31 October 2010.
Stephen Yapp, Executive Chairman said
“I am very pleased with both the price achieved for the disposal and the strategic repositioning of the Group that this facilitates.
Trading for the ten month period to 31 October 2010 has been ahead of the previous corresponding period and was in line with our internal expectations.
2010 has been a critical year for us. The continued improvement in the Group’s performance and the successful refinancing position us well to focus on the growth opportunities in our remaining businesses.”
Journey Group plc contacts:
+44 (0)20 8606 2000
+44 (0)20 8606 2000
Peel Hunt Limited (Nominated Adviser & Broker)
+44 (0)20 7418 8900