Article date: 15 July 2004
Aviva plc ("Aviva") has sold its Your Move estate agency ande.surv surveying businesses to Lending Solutions Limited, backed byBarclays Private Equity, for £42 million. The aggregate net assetvalue of Your Move and e.surv at 31 December 2003 was £5 millionand the aggregate pre-tax operating profit in 2003 was £1million.
Lending Solutions Limited is a new company which has been formedfor the purpose of acquiring Your Move and e.surv from Aviva. Itsmanagement team comprises members of the existing Your Move ande.surv management teams, and it is funded by a combination ofprivate equity and debt financing.
Commenting on the sale, Jim Newman, finance director of NorwichUnion Life and Pensions and the outgoing chairman of Your Move,said: "Having received a number of expressions of interest, weconcluded that these businesses were no longer core toAviva’s strategy and could be more effectively developedunder new ownership.
"We wish the management team and employees every success intheir new venture."
Your Move has around 230 branches and 2000 staff in the UK.e.surv, which operates from around 80 offices, employsapproximately 600 staff, including 250 chartered surveyors.
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Hayley Stimpson, director of external affairs +44 (0)20 76627544
Sue Winston, head of group media relations +44 (0)20 7662 8221
James Matthews, head of investor relations +44 (0)20 7662 2137
Notes to editors:
- Financial Reporting Standard 10 (FRS 10) requires thatgoodwill arising on acquisitions pre-1998 previously written-offto reserves be taken into account when calculating the profit/losson disposal of a business. Accordingly, the pre-tax accountingprofit/loss on sale which will be reported within thegroup’s financial statements for the year ended 31 December2004 will be calculated after the write back of goodwillpreviously written off to reserves of £167 million. The write backof goodwill previously written off to reserves does not affectshareholders’ funds nor the incremental impact of thetransaction on the net asset value per share.
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