The
information contained within this announcement was previously
deemed by the Company to constitute inside information as
stipulated by Market Abuse Regulation (EU) No 596/2014 ("EU MAR")
and the retained UK law version of EU MAR pursuant to the Market
Abuse (Amendment) (EU Exit) Regulations 2019 (SI 2019/310) ("UK
MAR"). With the publication of this announcement via a Regulatory
Information Service, this information is now considered to be in
the public domain
Roebuck Food Group plc
("Roebuck" or "the Company")
Disposal of Dairy
Division
29 May 2024
Roebuck Food Group plc (AIM: RFG), is pleased to
announce the sale of its dairy business ("the Disposal") to an unrelated partnership
engaged in the Irish dairy milking industry ("the Purchaser") for a consideration
of €1.45 million. Following the settlement
of indebtedness and the operation of a completion accounts
adjustment mechanism in the Share Purchase Agreement, this will
result in a consideration receivable by the Company of
approximately €1.3 million.
In its annual report for 2023, the Company noted its
focus on delivering shareholder value through efficient capital
allocation. The Company began discussions with the
Purchasers, which discussions have culminated in the Disposal.
Roebuck's dairy division, which is
the subject of the Disposal, is comprised within its wholly-owned
subsidiary Cantwellscourt Farm Limited, incorporated in Ireland
with registered number 580993, registered office at 6th Floor South
Bank House, Barrow Street, Dublin D04 TR29 and principal place of
business at Kilkenny, Co. Kilkenny, Ireland, where it operates a
dairy farm of 183 hectares held on a number of occupational
leases, with circa 470 milking cows.
The Disposal results in the Group's business changing
from a combination of the milling and importation of food and
ingredients, product sourcing and dairy farming to the milling and
importation of food and ingredients and product sourcing only. For
the year ended 31 December 2023 the dairy division generated
revenue of €1.6 million, loss after tax of €0.5 million, and had
net assets of €1.44 million.
The Disposal realises cash proceeds for potential
future acquisitions or investments, and for the general corporate
purposes of the Company and its subsidiaries ("the continuing Group").
In the Share Purchase Agreement, the Company has
given various warranties and indemnities to the Purchasers,
concerning (among other things) the share capital, business, and
assets of Cantwellscourt Farm Limited.
The Directors consider that the current trading of
the continuing Group is in line with expectations and remain
confident of the continuing Group's prospects for the current
financial year.
The Directors consider the terms of the Disposal to
be fair and reasonable and in the best interests of the Company and
its Shareholders as a whole.
The Directors of the Company accept responsibility
for the contents of this announcement.
Enquiries:
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Roebuck
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Aidan Hughes, Deputy
Chairman
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Telephone: + 44 1293 862
498
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Davy
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Anthony Farrell
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Telephone: + 353 1 679
6363
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