Ann: Agreement for the Sale of UXC Field Solution, page-9

re: Ann: Agreement for the Sale of UXC Field ... 2010 annual report says net debt was $39 million at that stage.
The MDs presentation to the 2010 report reveals that the core part of the FSG (UAM & Skiltech) has a much higher growth rate than the IT group, of the order of 50% annualised over 3 years cf almost flat for the IT group.

The recent presentation of May 2011 shows FSG first half EBITDA as 24% of UXC total EBITDA. Using $0.6/share one gets a total UXC asset value of $183 million. Adding $39 million debt to get a value of UXC assets of $222 million. The FSG could be worth more than $55 million given its higher underlying growth rate. This depends on relative levels of depreciation and amortisation for each group of course.

The board considered that the current share price does not reflect underlying asset value and indeed the Total assets in the balance sheet is double the market capitlisation value, so the Board should place a higher value on the FSG than $55 million.

A sale price of this order would leave UXC with no debt and a considerable chunk of money.

The analysis is all very tenuous I know but there is no other information to go on. We should know the sale price in a few days.