The Directors of Electric Word plc are pleased to announce the disposal of the trade and certain assets of the Company’s subsidiary, Radcliffe Publishing Limited (“Radcliffe Publishing”) to Informa UK Limited, trading as Taylor & Francis Group and a subsidiary of Informa plc. Radcliffe Publishing is part of the Health division and publishes books and other associated products to support the education and professional development of doctors, managers and professionals in health.
The total consideration is being satisfied in cash, and comprises £1,000,000 less a £43,061 adjustment for deferred revenue at completion, with £856,939 payable on completion and £100,000 payable on the first anniversary of the completion date. The sales proceeds will be used for general working capital purposes and to fund investment plans in other areas of the business.
In the year ended 30 November 2014, Radcliffe Publishing made a loss before tax of £325,764 (loss of £206,764 before group recharges) on turnover of £1,197,032. The value of the gross assets of Radcliffe Publishing at 30 November 2014 was £1,319,419.
The Directors deemed that the Radcliffe Publishing business was no longer core to the Group’s strategy.