Hasgrove plans to sell Amaze business

Hasgrove, a digital and communication services group, has conditionally agreed to dispose of Amaze, its full service marketing and technology company, in a bid to accelerate growth.

If shareholder approval is granted, the business will be sold to St Ives Marketing Services for a total cash consideration comprising a £15.3m initial payment payable on completion, which includes £1.8m repayment of intercompany debt, and up to a further £9.7m payable conditional upon achieving certain profit targets in 2013.

The net assets being disposed amount to £6.7m. In 2012 Amaze delivered revenue of £17.3m and operating profits before management recharges of £1.7m.

Following the sale of Amaze, Hasgrove will own three trading subsidiaries; Interact, The Chase and Landmarks. The group said it believes that these businesses address key market segments and offer growth potential. A proportion of the net disposal proceeds will be invested to accelerate the growth of Interact, particularly outside of the UK.

The company also said that following the transaction, its Group Finance Director, Stephen Collins, will step down from the board and leave Hasgrove, remaining with Amaze as Finance Director.

Paul Sanders, Hasgrove's Chief Executive, said: "We have worked with the management team of Amaze to grow and develop the business. It is now of a scale which needs further investment to take it to the next level. Therefore having received a good offer, we have decided now is the right time to realise our investment in Amaze."

The share price jumped 21.6% to 76p by 09:30.

NR