The reason for considering the demerger is that it may enable the Core Services and Investment businesses to develop better their opportunities as separate entities rather than in the single structure, as they would each be able to focus on their quite different activities. If the demerger proceeds, it would be intended that both new entities would be separately-listed AIM companies.
David Nicholson, Avesco's Chief Executive commented: "This is great news for both companies. We have so many opportunities ahead of us to develop our audio-visual and broadcast hire businesses, which we would be able to do so much more effectively if separated from our investment holdings. Complete has been very good for Avesco but we have never been dependent on the cash received from Complete, and it is perhaps time for us to consider developing Core Services separately from that investment.
He continued: "The past two years have been very tough for our industry. During this difficult period, when we have cut our net debt from over £26 million to under £10 million (less than one year's cash generation), we have still spent £25 million on capital equipment in our businesses. I am proud of our teams who have worked so hard to put us into this strong position, which will be our springboard to really move forward.
Avesco provides a range of audio visual-related services under the brands Creative Technology in the UK, Germany and USA; Screenco, MCL and Dimension in the UK; Action in France and JVR in Holland. Presteigne supplies broadcast equipment hire services from its base in the UK.
(Lee Baldock)
