Morgan Sindall Group Regulatory News (MGNS)

24 Mar 2006 14:00

Gleeson(M J)Group PLC24 March 2006 M J GLEESON GROUP PLC £23.3m disposal of Gleeson MCL Limited Gleeson announces the disposal of its subsidiary, Gleeson MCL Limited, to MorganSindall plc for a cash consideration of £23.3m. Gleeson MCL is a construction services business involved in railway engineeringcontracting, in particular work for and in partnership with London UndergroundLimited. Based at Hatfield, Hertfordshire, Gleeson MCL has 143 employees, all ofwhom will be transferring to Morgan Sindall. Gleeson MCL's audited accounts for the year to 30 June 2005 disclose anoperating profit of £1.8m and a pre-tax profit of £2.1m. As at 30 June 2005,Gleeson MCL had gross assets of £18.1m, including net cash of £6.1m. The cash consideration of £23.3m is subject to adjustment either way to theextent that the net assets at completion differ from £8.1m. Gleeson acquired what was renamed Gleeson MCL for £6.1m in January 2000. Thedisposal has resulted in a net cash inflow to Gleeson estimated at £18.5m, whichwill be used initially to reduce its indebtedness. Gleeson MCL is led by Danny Duggan, 48, who graduated from Aston University inBirmingham and then spent five years with Tarmac Construction Ltd before joiningGleeson MCL (formerly Mabey Construction) in 1984. In 1998, Danny was promotedto its Contracts Director and in 2004 he became its Managing Director. Danny is supported in the management of Gleeson MCL by Mike Sellers (ChiefQuantity Surveyor), Ron New (Commercial Director), Bill Pike (ContractsDirector) and Steven Holmes (Contracts Director) who have all been with thebusiness for over 18 years. Gleeson expects to announce its interim results for the six months to 31December 2005 on Friday 31 March 2006. At the same time, the Group will providedetails of its strategic review. Enquiries: M J Gleeson Group plc 020-8644 4321Terry Massingham (Chief Executive)Paul Wallwork (Finance Director) Close Brothers Corporate Finance LimitedPeter Alcaraz 020-7655 3139 Bankside Consultants LimitedCharles Ponsonby 020-7367 8851/07789-202 312 This information is provided by RNS The company news service from the London Stock Exchange