Melbourne, Dec 19, 2007 (ABN Newswire) - Concept Sports Limited (ASX: CCS) (the Company) is pleased to announce that it has acquired the remaining 50% shareholding in Kea Designer Sportswear (UK) Limited from Cooneen Textiles Ltd for £320,000. The Company now owns 100% of the share capital in Kea Designer Sportswear (UK) Limited. The acquisition will be funded predominantly out of future cash flows.
Chief Executive Officer, Glen Casey, said that this acquisition will provide the business with a permanent footprint in Europe enabling a significant increase in the expansion of its sportswear and education business in Europe through provision of sublimated product from the Company's China manufacturing operations. Mr Casey went on to say that he expected the European operations to be a major contributor to the Company's profitability in the immediate future.
In terms of its domestic operations, the Company advises that the first stage of its cost reductions have been undertaken with the rationalisation of head office functions and events business along with the exit from the Port Melbourne warehousing operations which will be transferred to other warehouses in the Group.
