Demerger to raise £3m for Admiral

THE company that owns the Admiral and Mountain Equipment clothing ranges is to be demerged next month, raising about £3m. Under the demerger plans revealed today, Hay & Robertson shareholders will receive one share in the new company, International Brand Licensing, for every H&R share. IBL will use the raising and bank debt to repay loans of £4.6m to H&R.

The spin-off will see IBL retain the distribution rights for all Admiral goods except for specialist products such as replica England cricket team kit, which will be sold through H&R's network.

The move is aimed at enabling IBL to build its portfolio of brands, leaving H&R to focus on its distribution operations while retaining the Kangol brand.

Figures provided by H&R show IBL made a £464,000 operating profit last year from turnover of £1m.

'An independent IBL will be better able to take advantage of new opportunities while allowing the board of H&R to concentrate on the core business and the developments of sports e-tail,' said H&R chairman David Bailey.