Alumasc Group PLC Disposal of APC & Trading Update (4334R)
June 26 2015 - 12:34PM
UK Regulatory
TIDMALU
RNS Number : 4334R
Alumasc Group PLC
26 June 2015
26 June 2015
THE ALUMASC GROUP PLC ("Alumasc" or "the Group")
SALE OF ALUMASC PRECISION COMPONENTS AND TRADING UPDATE
Sale of Alumasc Precision Components ("APC")
In Autumn 2014, the Alumasc Board announced that the focus of
the Group's future strategic development would be to accelerate the
growth of its market-leading Building Products activities and, as a
consequence, it was seeking a buyer for APC, the larger of the
Group's two Engineering Products businesses.
Alumasc is pleased to announce that it has today completed the
sale of the trade and assets of APC to the Shield Group ("Shield")
for cash consideration of GBP5.8 million, paid at completion,
subject to completion accounts adjustments. The value of the gross
and net assets divested was approximately GBP9 million and GBP6.5
million, respectively. Prior to transaction costs, the sale will
result in the Group's net assets decreasing by approximately GBP0.5
million. Under the terms of the transaction, APC's legacy defined
benefit pension obligations will be retained by Alumasc.
For the year ended 30 June 2014, APC generated an operating loss
of GBP1.4 million. The business delivered an improved performance
in the first half of the current financial year. The expected
one-off costs associated with exiting the business and resolving
the customer claims referred to in Alumasc's interim results
announcement are expected to be circa GBP2 million, of which
approximately GBP1.5 million are cash costs.
The cash proceeds from the sale of APC will be used to support
the development of the Group's Building Products activities,
including the relocation, modernisation and expansion of its
Rainwater & Drainage business, currently located on the same
site as APC.
Like APC, Shield supplies precision engineered aluminium
components primarily to the off highway diesel and automotive
markets and the two businesses have certain customers in common.
APC's employees have transferred to Shield under TUPE and Shield
has indicated that it intends to invest in and develop the APC
business at its current factory near Kettering.
Trading Update
The trading performance elsewhere in the Alumasc Group in the
second half of the current financial year has been better than
management expected at the time of the interim results. All
business segments in the Building Products division have
contributed to this.
The outlook for the Group continues to improve and the Building
Products divisional order books currently stand at GBP23.7 million
(31 December 2014: GBP19.2 million). The order intake in the
current financial year to date has been over 20% ahead of the
equivalent period in the prior year.
Paul Hooper, Chief Executive of The Alumasc Group,
commented:
"We are delighted to have concluded the sale of APC to Shield, a
company we believe is better positioned than Alumasc to develop the
business and its service to customers.
The divestment of APC will be strongly earnings and cash flow
enhancing for Alumasc and will allow the Group to focus on its
strategic priority to drive the further profitable growth of its
continuing businesses."
ENDS
Enquiries:
The Alumasc Group plc
Paul Hooper (Chief Executive) Tel: 01536 383821
Andrew Magson (Group Finance Director) Tel: 01536 383844
Glenmill Partners
Simon Bloomfield Tel: 07771 758517
This information is provided by RNS
The company news service from the London Stock Exchange
END
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