Sale of UK Mixing Facility

RNS Number : 8179H

Avon Rubber PLC

10 November 2008

 



10 November 2008

AVON RUBBER p.l.c.

('Avon', the 'Group' or the 'Company')

SALE OF UK MIXING FACILITY

In January we announced that we were commencing the closure of our UK mixing facility, a process which we were pursuing at the time of the announcement of the interim results in May. 

We are now pleased to announce that the Group has completed the sale of certain of its mixing facility assets to ATR Compounding Limited for a consideration of £2.05 million, payable in cash. The proceeds will be used to reduce current borrowings.

The discontinued mixing business incurred an operating loss of £1.1 million in the year to 30 September 2007 on revenues of £7.0 million. The net book value of the assets disposed of at 31 March 2008 was £2.9 million.

Commenting, Peter Slabbert, Chief Executive said: 'Our decision to close the facility back in January followed a prolonged period during which the mixing business incurred considerable losses. I am delighted that through this process we have now managed to eliminate those losses and realise value for this asset.'

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For further enquiries please contact: 

Avon Rubber p.l.c:

Peter Slabbert, Chief Executive                                                    01225 896830

Fiona Stewart, Corporate Communications Executive                01225 896871

Weber Shandwick Financial:

Nick Oborne                                                                                  020 7067 0700

Clare Perks                                                                                   020 7067 0700

NOTES TO EDITORS:

Avon Rubber p.l.c. is an international polymer engineering group adding value through material, manufacturing and industry sector expertise.  For further information please visit the Group's website www.avon-rubber.com 

 

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