Jones to make major cash payout

Jones Group shareholders are in line for a cash payout of up to 100p per share next month when the former engineering group completes the sale of its non-distribution assets and distributes its cash surplus to shareholders.

The Jones chief executive, Mr Pat Nevin, said yesterday that the last remaining non-core asset, the Kilkenny engineering company Tube Rollers, is the focus of "active negotiations" with prospective buyers and this sale is the final step before the cash distribution takes place.

Analysts believe that Jones will have around £12 million to pay to shareholders, enough for about 100p per share.

Yesterday, Jones announced that it has sold its radiators business, Runtalrad and Thermal Radiators, to the Swiss group Zehnder, a 21 per cent shareholder in Jones, for £1.2 million. In addition, Jones expects to realise a further £900,000 from trade debtors of the radiator companies.

Last year, Runtalrad and Thermal Radiators had pre-tax profits of £656,000 but reported losses in the first four months of the current year. The net assets being sold are £2.7 million and Jones will report a £1.5 million loss on the sale to Zehnder.

Earlier this year, Jones sold its remaining shipping interests and the circuit board manufacturer, Midwest Circuits. When the asset sales are complete and the cash distributed to shareholders, Jones will be left a clean balance sheet with oil and gas distribution operations which have sales of around £80 million.