Following a review of its trading operations, Network Group Holdings has sold two of its subsidiaries: Executive Network Legal and Total Employment.

The two companies have been bought by Jonathon D Smith, director and shareholder of Network Group Holdings, for £2.

At the same time, Network Group Holdings has received a cash injection of approximately £600,000 after three other parties agreed to purchase at face value the debt owed by Executive Network Legal and Total Employment to Network Group Holdings.

The two subsidiaries recorded losses of £102,000 in the year ending 30 November 2008 and these losses have increased this year.

Network Group Holdings is also in negotiations to sell a third subsidiary to its managing director for around £35,000.