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Berkeley Berry Birch sells subsidiary.

Berkeley Berry Birch, the Coventry group of financial advisers, has sold the business of subsidiary Berry Birch & Noble Financial Planning (Weston) to Bates Investment Services.

Bates will pay an initial pounds 1 million, plus deferred payments based on renewals commission received, less the share paid to the self-employed independent financial advisers, for the year following completion.

Based on previous levels of these commissions, Berkeley Berry estimates the deferred payment will come in at around pounds 100,000.

In addition, Bates has assumed liabilities with an estimated book value of around pounds 450,000, largely for indemnity commissions and commission payable to Weston's IF As.

There are also contingent liabilities for indemnity commissions which, if they crystallise, will be payable by Bates up to a maximum of about pounds 400,000. The book value of the gross assets sold is approximately pounds 1.25 million, including goodwill of pounds 945,000 recorded in Berkely Berry Birch's balance sheet.

For the year to March, 2005, Weston reported turnover of pounds 8.05 million and a pretax loss of pounds 1.6 million.

Berkeley Berry Birch said it would use the proceeds of the sale of the subsidiary to meet its liabilities to its remaining creditors.
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Title Annotation:Business
Publication:The Birmingham Post (England)
Date:Mar 17, 2006
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