Perth-headquartered labour hire and recruitment company Integrated Group Ltd has announced an agreement to sell its training arm, Integrated Training Pty Ltd to Today Corp Pty Ltd.
The $1 million sale, to be paid in Today Corp shares, is subject to due diligence and will allow Integrated to restore its focus on its core employment services business.
Today Corp is a leading Australian provider of training services and software, and will fulfill existing Integrated training contracts and continue to deliver training services to IGL customers.
For Today Corp the transaction is a substantial step forward in the development of its services in the Accredited Training market as the acquisition extends its national presence and compliments its joint venture with Australian Business Ltd.
The disposal of the training division of the business comes after Integrated announced a $4.5 million writedown in its carrying value in the December half of the 2005-06 year.
IGL is also close to concluding a vessel sales and manning services agreements with Mermaid Marine Australia Pty Ltd.
After the transaction the marine division will focus on developing a specialist marine services business, targeting long-term contracts for total employment services on vessels and off-shore platforms.
IGL has previously advised that the finalisation of both matters would result in a number of one off gains and losses.
The net impact to second half profit from the sale of the training business (inclusive of training trading losses) and the sale of the vessels is approximately $3M loss after tax.
The core employment services business continues to trade well and will benefit from renewed management focus.
