Skillsgroup PLC - Disposal

RNS No 2591f
SKILLSGROUP PLC
5th January 1998
 
 
 
                 Sale of P&P UK business
 
Strategy to focus on skills-based activities through QA & Acuma
 
Skillsgroup is pleased to announce:
 
   * the agreed sale to GE Capital Investments, on behalf
     of GE Capital IT Solutions (GE), of the P&P UK desktop
     computer  business, including the  Managed  Services
     Division, for a consideration of #11.5 million plus net
     assets of approximately #0.1 million.
 
   * that  GE  will  assume the  existing  bank  debt
     associated  with P&P UK which, net of  inter-company
     receivables, amounts to approximately #15 million.
 
This is an important development for Skillsgroup and is
consistent with:
 
   * the strategic focus on higher margin skills-based
     activities through its continuing businesses, QA and
     Acuma.
 
   * the  continuing progress of QA  and  Acuma  with
     operating profits for 1997 expected to be no less than
     #10.8 million representing 15% growth.
 
   * the recently announced sale of Skillsgroup's  PC
     distribution business in Sweden for a consideration of
     SEK 130 million (approximately #10.2 million) and the
     planned  sale of Skillsgroup's Belgian  PC  reseller
     business.
 
Commenting on the above, David Southworth, Group Managing
Director of Skillsgroup, said:
 
'These  important developments will enable the  Group  to
focus  on higher margin, skills-based activities  through
QA  and Acuma, both of which will show continued progress
for the year ended 30 November 1997.'
 
'QA  is recognised as the leading IT training company  in
the   UK   and   has  considerable  IT  recruitment   and
consultancy   skills.   During  1997,  Acuma   has   been
established as a leading supplier of enterprise computing
solutions  to  major organisations as  a  result  of  its
considerable in-house systems and software expertise.'
 
 
For further information, please contact:
 
Skillsgroup  plc                             01706 830400
 
David Southworth, Group Managing Director
John Atkin, Group Finance Director
 
 
Ludgate  Communications                      0171 253 2252
 
Chris Lynch/Reg Hoare
 
 
                            
 
                     Sale of P&P UK
 
Strategic focus on higher margin, skills-based activities
 
 
In  line with its strategy of increasing focus on skills-
based activities, Skillsgroup is pleased to announce that
it  has  agreed  to  sell  its P&P  UK  desktop  computer
business (P&P UK) to GE Capital Investments on behalf  of
GE  Capital  IT  Solutions (GE), for a  consideration  of
#11.5  million in cash plus a pound for pound  adjustment
for the value of net assets at completion.  The value  of
these  net  assets  is expected to be approximately  #0.1
million.  GE  will  also assume the  existing  bank  debt
associated  with  P&P  UK  which,  net  of  inter-company
receivables, amounts to approximately #15 million.   #2.2
million   of   the  consideration  will  be   paid   upon
finalisation of accounts for P&P UK as at completion.
 
The  proforma  audited accounts for  the  year  ended  30
November  1996  showed that P&P UK  (which  includes  the
Managed Services Division) generated operating profits of
#3.1  million  on revenues of #135 million  and  had  net
operating assets of #10.5 million.  The proceeds  of  the
sale will be used by Skillsgroup to reduce Group net debt
and to invest further in its QA and Acuma businesses.
 
P&P  UK  comprises  P&P  Limited, P&P  Corporate  Systems
Limited and P&P Micro Distributors Limited which together
form  one  of the UK's leading desktop computer  reseller
and  services businesses.  P&P UK employs more  than  500
personnel  and  supplies a broad  range  of  PC  desktop,
server,  networking and outsourcing services to corporate
and public sector organisations.  Members of P&P's senior
management team will join the senior management  team  of
GE in the UK.
 
The  sale  of P&P UK will enable Skillsgroup to focus  on
its  higher  margin, skills-based activities through  its
continuing  businesses, QA and Acuma.  QA  is  a  leading
provider  of  IT  education, contractor, permanent  staff
recruitment and consultancy services. Acuma is a  leading
supplier of high-value enterprise computing solutions for
UNIX  and  Windows NT platforms and has considerable  in-
house consultancy and software expertise.
 
The  Group  expects that QA and Acuma will show continued
progress  for  the year ended 30 November 1997  and  will
produce  operating profits of not less than #10.8 million
compared with operating profits of #9.4 million in  1996.
These  operating  profits exclude those  of  the  Managed
Services  Division which is included in the sale  of  P&P
UK,  although the results of that Division were  reported
originally in the QA business results for 1996.
 
The  Group believes this sale to be in the best interests
of  the employees, customers and suppliers of P&P UK.  It
will become part of the European organisation of GE,  the
largest   vendor-independent  IT  products  and  services
business in Europe, with projected revenues of $2 billion
in  1998.  Worldwide, GE operates in 17 countries and  is
expected  to  have  1998  revenues  of  approximately  $9
billion.
 
Skillsgroup  and  GE  intend  to  collaborate  on  future
projects to enable QA and Acuma to offer desktop products
supplied  by GE as part of their major client  solutions.
This  strategic alliance will also provide GE with access
to the specialist skills and expertise of QA and Acuma.
 
The  sale  of  P&P  UK  is part of  the  Group's  overall
strategy  of  focusing  on  higher  margin,  skills-based
activities.   As  part  of  this  strategy,   the   Group
announced on 18 December 1997 the sale of its PC  product
distribution  business in Sweden for a  consideration  of
SEK  130 million (approximately #10.2 million).  On  this
date, the Group also announced its intention to sell  its
PC  reseller business in Belgium during 1998, in  support
of  the Belgian management team's desire to be part of  a
European  or  global IT products and services  operation.
Further details of these developments were contained in a
Group announcement dated 18 December 1997.
 
 
Skillsgroup   is   a  leading  provider  of   information
technology  skills  which delivers complete  consultancy,
supply,  education, management and recruitment  solutions
to  a  broad  range of customers within the UK,  mainland
Europe  and  North America. QA consists of  QA  Training,
Myriad  (which provides contractor services and  recruits
permanent staff for corporate clients), QA Consulting, QA
Scotland  and QA Sweden. Acuma is a leading  supplier  of
high  value  enterprise computing solutions and  includes
Synergica  which is a leading developer of  Internet  and
Groupware  solutions  in Sweden.  In  recent  years,  the
Group  has  focused  on  the development  of  its  higher
margin,   skills-based  activities  through  the  planned
expansion of its QA and Acuma businesses.
 
 
END

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