Eleco PLC Sale of Building Products Manufacturing Businesses (0822G)

TIDMELCO

RNS Number : 0822G

Eleco PLC

03 June 2013

For immediate release at 07:00 on 3 June 2013

Eleco plc

("Eleco" or the "Group")

The Construction Software and Building Systems Group

Sale of ElecoBuild's Building Products Manufacturing Businesses

("the businesses")

The Board of Eleco announces that its subsidiary, ElecoBuild Limited, has sold the businesses and assets of its four building products manufacturing businesses to Omnis Industries Limited.

The businesses sold comprise SpeedDeck Building Systems, Prompt Profiles, Stramit Panel Products and Downer Cladding Systems, which are all based at Yaxley in Suffolk. Following the disposal of these businesses, Eleco's continuing ElecoBuild trading subsidiaries will be Bell & Webster Concrete Ltd, based at Grantham and Milbury Systems Ltd, based at Lydney, which are both well established businesses engaged in the manufacture of precast concrete products.

Based on the audited accounts of the businesses as at 31 December 2012, the assets sold amounted to GBP1.8m; and the combined turnover and losses of the businesses in the year ended 31 December 2012 amounted to GBP9.7m and GBP(1.2)m respectively. Based on unaudited management accounts for the 4 months ended 30 April 2013, the assets sold amounted to GBP1.8m; and the combined turnover and losses of the businesses amounted to GBP2.4m and GBP(0.4)m respectively.

The consideration to be received at completion by Eleco for the sale of the businesses is GBP200,000 in cash with a further GBP25,000 in cash to be held in escrow for 1 year. Further sums may be received in certain circumstances.

In agreeing the terms of these disposals, the Board of Eleco placed considerable weight on an agreement by the buyer to extend TUPE undertakings to all 44 employees of the businesses. Eleco is also retaining the 116,000 sq ft freehold property currently occupied by the businesses and has agreed a one year lease with Omnis Industries Limited.

For further information please contact:

 
                                            0207 422 
 Eleco plc                                   0044 
 John Ketteley, Executive Chairman          www.eleco.com 
 Matthew Turner, Group Finance Director 
                                            0207 808 
 Peckwater PR - Tarquin Edwards              7340 
                                            0207 397 
 Cenkos Securities plc - Adrian Hargrave     8900

This information is provided by RNS

The company news service from the London Stock Exchange

END

DISEAFKAEAADEAF

Eleco Public (LSE:ELCO)
Historical Stock Chart
From Jun 2024 to Jul 2024