Jones Group's shareholders will receive a pay-out of around 250p (317 cents) per share, in line with estimates, following the management buyout.
The pro-forma balance sheet published yesterday shows net assets of £11.3 million (€14.35 million). There is also a surplus of £2 million (€2.54 million) from the pension fund, not disclosed in the accounts. Combined, the net assets per share amount to 256p (325 cents). The payment, after expenses, will be a little below that.
The pay-out will be made in two tranches - the first, comprising more than half, probably in June. The second payment will be made six to nine months later, said the finance director, Mr Jim McLoughlin.
Shareholders at an extraordinary general meeting last February agreed to the disposal of the distribution division to the management team, headed by Mr Pat Nevin, who resigned as chief executive, and the disposal of the group's shareholding in Blugas to the Richmond Group and Bord na Mona. The sale of the distribution division was completed on February 19th, while the sale of Blugas was completed on March 29th. The surplus cash is now to be returned to the shareholders. When that is completed, the company will be dissolved.
The Jones' annual accounts for 1998 are now academic as they have been prepared on a discontinued basis. They show a fall in sales from £104 million to £92 million. There was a loss of £2.5 million on the disposal of discontinued operations. Jones recorded a loss before tax of £1.15 million compared with a profit of £2.19 million.
A breakdown shows the distribution business made a profit of £1.47 million compared with £1.40 million in 1997. This is in line with the statement by Jones' chairman, Mr Eugene Greene, at the extraordinary general meeting, that the trading profits of distribution in 1998 were similar to those in 1997.
Manufacturing incurred a loss of £4.19 million compared with a profit of £0.35 million, while the shipping division's profits fell from £0.67 million to £0.64 million.
