June 26 2004. James Halstead plc has announced that it has sold its subsidiary Belstaff International Limited together with several brands.

Until 1990, this subsidiary manufactured clothing in the UK but since then it has operated several licence agreements in respect of the intellectual property. Licensing arrangements have been in place for wax cotton jackets, golf-wear and general leisure wear in the UK and in Europe. One of these licensees, based in Italy, has acquired these brands and the subsidiary.

Currently, James Halstead's subsidiary, Phoenix Distribution (NW) Limited markets some of its motorcycle clothing under one of the brands and the disposal will not immediately affect this arrangement. The Italian company will be more active in the design and sourcing of motorcycle wear and Phoenix is well placed to continue distribution of motorcycle clothing.

The total consideration receivable, after costs, is in the region of £10 million. In the year to 30th June 2003 the group accounts included £852,000 received in respect of royalties. The royalty stream derived from these activities by James Halstead plc will cease as a result of this disposal.