Sale of Building Products Manufacturing Businesses

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 £1.8m; and the combined turnover and losses of the businesses in the year ended 31 December 2012 amounted to £9.7m and £(1.2)m respectively. Based on unaudited management accounts for the 4 months ended 30 April 2013, the assets sold amounted to £1.8m; and the combined turnover and losses of the businesses amounted to £2.4m and £(0.4)m respectively.

The consideration to be received at completion by Eleco for the sale of the businesses is £200,000 in cash with a further £25,000 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:

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

 

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