WNS Wensum

RNS Number:3206D
Wensum Company PLC
22 May 2006

THE WENSUM COMPANY PLC


Further announcement - Disposal of Wensum's Clothing Business


The Company announced on 27 April 2006, in the Chairman's Statement accompanying
the preliminary results for the year ended 28 January 2006, that the Board had
received an approach from an overseas group indicating that it was interested in
acquiring the trading assets of its subsidiary, The Wensum Clothing Company plc
("Wensum Clothing"). The announcement also stated that the Board had responded
positively and that outline non-binding terms had been agreed for the disposal
of Wensum Clothings' menswear trading activities.


The Board now announces that Wensum Clothing has sold its business and certain
trading assets and liabilities to Wensum Tailoring Limited ("the Purchaser").
The assets sold include fixed assets, other than land and buildings, stock and
work-in- progress, the benefit of Wensum Clothing's existing orders and customer
list, and certain intellectual property rights. Stock values have been
estimated, pending agreement, as at the close of business on 19 May 2006, with
any adjustments being reflected in the final consideration.


Subject to that adjustment, Wensum Clothing will receive approximately #450,000
for the assets at a discount against book value of approximately #175,000. The
Directors believe that the loss attributable to the transaction, including
write-offs and fees, will not exceed #375,000. The Purchaser will satisfy the
sum payable, as to #210,000, in cash and, as to the balance by discharging
certain of Wensum Clothing's creditors. Wensum Clothing remains liable to
discharge the balance of its creditors including an overdraft, which, at
year-end stood at #1.3m. Against this it has retained its existing trade debtors
valued at the year-end at #854,000. At 28 January 2006 other Group companies had
cash balances amounting to #3.2m, resulting in Group consolidated net cash
balances #1.9m.


The Group will continue to own the Norwich property, and has granted a
short-term licence to the purchaser, while exploring alternative uses for the
site.


The Group reported exceptional non-recurring costs attributable to the factory
closure in Norwich of #926,000, in the year to 28 January 2006. Wensum Clothing
showed a net loss before taxation and exceptional items for the same period of
#455,000.


The sale of Wensum Clothing brings to an end the Group's involvement in
manufacturing and this will facilitate management focussing all of its attention
and resources on the successful and profitable front-of-house uniform business
of Wensum Corporate.




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