25 Jan 2010 12:22
News release
25 January 2010
Midas completes sale of iimia Wealth Management
to Jardine Lloyd Thompson Group Plc
Further to the announcement made on 3 December 2009, Midas Capital PLC ("Midas") announces that it has completed the sale of iimia Wealth Management ("iWM"), trading as iimia plc, iimia Financial Planning Ltd and J K Miln & Co Ltd, to Jardine Lloyd Thompson Group plc ("JLT").
The consideration receivable for iWM is £7.25million. This comprises a minimum initial agreed cash payment of £6.5 million, with further cash payments due of up to £1.8 million, after the determination of the value of the surplus net assets of iWM as at the completion date and includes the release of a £0.25 million retention.
iWM had combined revenues for the 6 month period ended 30 June 2009 of £2.9 million and contributed £0.46 million to Midas' consolidated profit before management charges, amortisation, exceptional items and tax. As at 30 June 2009 the net book value of the iWM business, after deduction of intangible assets and net intercompany indebtedness, was £2.8million. Included within iWM at completion was cash of £1.6 million. As a result of the transaction £0.74 million of loan notes, owed to the original vendors of J K Miln & Co Ltd, will fall due for immediate repayment.
Proceeds from the sale of iWM will be used to retire more of the group's preference capital and improve regulatory capital resources available to the fund management businesses. Following the £2.4 million repayment made in December 2009, Midas had Preference Capital of £11.6 million outstanding.
As at 31 December 2009, the group had assets under management, excluding iWM, of approximately £1.56 billion.
Colin Rutherford, Chairman, Midas, says:
"In line with our strategy Midas is now focused on its fund management activities through its Midas and Miton brands. We continue to make significant progress in retiring our debt and preference capital."
For further information, please contact:
Colin Rutherford, Executive Chairman, Midas 07768 053 054
Roland Cross, Director, Broadgate Mainland 020 7726 6111
James Steel, Arbuthnot Securities Limited 020 7012 2000
(Nominated Advisor and Broker to Midas)
Web: www.midascapitalplc.com