Alumasc Group PLC £4m sale of Dyson Diecastings (8777C)
June 30 2016 - 11:50AM
UK Regulatory
TIDMALU
RNS Number : 8777C
Alumasc Group PLC
30 June 2016
Announcement 30 June 2016
The Alumasc Group Plc ("Alumasc" or "the group")
Sale of Dyson Diecastings and trading update
(a) Sale of Dyson Diecastings ("Dyson")
At the time of its interim results for the six months to 31
December 2015, published on 2 February 2016, the Alumasc Board
announced that, in line with its strategy, it had initiated a
process for the disposal of Dyson Diecastings, the group's last
remaining Engineering Products business. Today, Alumasc is pleased
to announce that it has completed the sale of the business and
assets of Dyson to Broadways Stampings for net cash consideration
of GBP4.0m, paid at completion, subject only to the finalisation of
completion accounts.
The gross and net book values of assets sold is expected to be
circa GBP3.9m and GBP3.2m respectively, giving rise to an expected
gain on sale and consequential increase in group net assets of
GBP0.8m, again subject to finalisation of completion accounts.
Under the terms of the transaction, Dyson's legacy defined benefit
pension obligations will be retained by Alumasc.
In the financial year ended 30 June 2015, Dyson reported
revenues of GBP8.1m and an operating profit of GBP0.7m. Market and
trading conditions for Dyson have been more challenging in the
current financial year, and so the sale of Dyson is expected to be
broadly earnings per share neutral to the group.
With the sale of Dyson, the group has achieved its strategic
objective of becoming a focused supplier of niche building
products, systems and solutions. This will enable management to
concentrate solely on driving further profitable growth in these
activities. The cash proceeds from the sale of Dyson will be
re-invested to support this growth, including the intended purchase
of new premises for Alumasc's Water Management Solutions business
as it approaches full capacity over the next couple of years.
Paul Hooper, Chief Executive of Alumasc, commented:
"I would like to thank the management and staff of Dyson for
their positive contribution to Alumasc over many years and wish all
of them and the business continued success under new ownership.
The sale of Dyson represents another key strategic milestone for
Alumasc, which has been transformed over recent years from a
diversified group into a focused, growing niche building products
business with significant further growth potential."
(b) Trading update
In the financial year ended 30 June 2016, the performance of
Alumasc's continuing building products operations has been broadly
in line with market expectations. Despite the short term impact on
the UK construction markets of uncertainties surrounding the EU
referendum towards the end of the financial year, the group has
delivered growth and improving returns across a number of its niche
building product businesses.
Cash generation continues to be strong, and Alumasc was already
ungeared prior to the proceeds from the sale of Dyson announced
today.
The group currently has close to record building products order
books. Order book growth and visibility is the greatest at Levolux,
our solar shading and screening business, which has seen a
significant uplift in orders for exports to North America.
Whilst it is too early to tell whether the recent referendum
result will have any effect on the group's business, we see long
term structural drivers that support a positive outlook for revenue
development across our business segments and enter the new
financial year with strong order books.
END
Enquiries:
The Alumasc Group plc
Paul Hooper (Chief Executive) 01536 383821
Andrew Magson (Finance Director) 01536 383844
Glenmill Partners Limited
Simon Bloomfield 07771 758514
This information is provided by RNS
The company news service from the London Stock Exchange
END
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