Last checked at 5 Jul 2013 07:00
RNS
5 July 2013
The Innovation Group plc
('Innovation Group' or the 'Group')
Disposal of Travest Investments Proprietary Limited
The Innovation Group (LSE:TIG.L), a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries, announces that its South African subsidiary, Innovation Group (Pty) Limited, which is 75% owned by the Group, has completed the sale of a 61.8% equity interest in Travest Investments Proprietary Limited (Travest) for a total cash consideration of £3.9m (ZAR 58.7m) to Santam Limited.
Travest's only business and wholly owned subsidiary Travel Insurance Consultants Proprietary Limited (TIC) is South Africa's largest provider of travel insurance to outbound travellers from South Africa. For the year ended 30 September 2012, the business reported audited revenues of £4.3m (ZAR 54.6m) and a profit before tax of £2.2m (ZAR 28.3m). As at the same date gross assets were £2.9m (ZAR 40.8m). In the six months to 31 March 2013 corresponding non-audited figures were £1.9m (ZAR 26.9m), £0.7m (ZAR 9.4m) and £2.9m (ZAR 40.6m) respectively.
The travel business is the last significant non-core business owned by the Group and this disposal is in line with the Group's stated strategy of focussing on both organic and acquired growth in the motor and property sectors. Furthermore the recent introduction of "Binder" legislation in the South African insurance industry has created an environment where it would be difficult to continue to trade profitably in the future without the formation of a regulated insurance entity - a strategy the Group has chosen not to adopt.
After accounting for both tax and non-controlling interests the reduction in the Group's Adjusted Earnings Per Share is expected to be minimal at 0.02p for 2013 and 0.06p for 2014. The proceeds from the sale are expected to be used to fund future earnings accretive acquisitions in the motor or property sector.
Enquiries:
The Innovation Group plc | Tel: +44 (0) 1489 898 300 |
Andy Roberts, Chief Executive Officer | |
Jane Hall, Group Finance Director James Liddiard, Company Secretary | |
FTI Consulting LLP | Tel: +44 (0) 20 7831 3113 |
Edward Bridges / Matt Dixon / Tracey Bowditch / Elodie Castagna |
About The Innovation Group plc:
Innovation Group (LSE: TIG) is a global provider of insurance software solutions and business process services. With revenues of £193m (US$ 302m) in 2012, it employs over 2,400 people across North America, Europe, Asia Pacific and South Africa and works with 15 of the top 20 global insurance markets, 16 of the top 20 global insurance companies and 3 of the world's top 5 fleet and lease management companies.
www.innovation-group.com