REG - Roebuck Food Group - Disposal of Dairy Division

Roebuck FoodAnnouncement

29/05/2024 17:30

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RNS Number : 3449Q  Roebuck Food Group PLC  29 May 2024

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:

 Roebuck
 Aidan Hughes, Deputy Chairman  Telephone: + 44 1293 862 498

 Davy
 Anthony Farrell                Telephone: + 353 1 679 6363

 

 

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