Nestor to demerge staffing business
Main-listed Nestor Healthcare in Hatfield has announced plans to demerge its staffing business. The new business is to be called Pinnacle Staffing Group and will seek admission to junior market, AIM later this summer.
Shareholders will receive one share in the new company for every Nestor share held.
The move was welcomed by the City, with Nestor shares rising almost 13 per cent to 124p.
Nestor chairman, John Rennocks said: “The proposed demerger will help unlock the underlying value of Nestor and the staffing business for shareholders, while creating two separate companies with their own distinct investment propositions and market valuations.”
Neither Nestor nor Pinnacle is raising funds as part of the process and neither will have a shareholding in the other following the demerger.
Nestor said that its primary care and social care businesses had become increasingly important contributors to both revenues and profits and also growth prospects while the staffing business had become progressively less significant in those areas.
The move is also designed to improve the market valuation of Nestor’s component parts.
Nestor said that current trading was in line with expectations described in its preliminary results announcement made in March 2006. The social care business in particular has continued to win a number of new tenders from other home care providers, with an annualised value of £10.6m.