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Friday 28 October, 2016

entu (UK) plc

Strategic Disposal

RNS Number : 6799N
entu (UK) plc
28 October 2016
 

 

Entu (UK) plc

 

Strategic Disposal of Astley

 

Entu (UK) plc, ("Entu" or the "Company" or the "Group"), the home improvement group providing energy efficiency products and services to homeowners and businesses in the UK, announces that it has agreed the disposal of the entire share capital of Astley Facades Limited and its wholly owned subsidiaries ('Astley') to Duality Group Ltd.  The business was valued at £0.2 million, based on the financial position of Astley at 31 August 2016 to be adjusted for subsequent net working capital movements before completion. These net working capital movements totalled an outflow of £0.2 million to Entu, resulting in a net purchase price at completion of £1.

The disposal is in line with Entu's strategic focus on improving the performance of, and driving growth in, its core Home Improvements business.

Astley specialises in exterior wall insulation, render and specialist cladding for new-build construction and the refurbishment of existing stock.  Since being acquired by Entu in March 2015, Astley has grown its order book significantly.  However, in line with the general direction of the specialist facades market, Astley is increasingly engaged as a subcontractor on a number of large, long term, construction contracts which is, typically, lower margin business and not in line with Entu's core customer base and specialisms.

The Board has therefore concluded that Astley is non-core and that a disposal is the most fitting strategic option.

On 11 October 2016, the Group issued a trading update stating that EBITDA from continuing operations before exceptional items was expected to be in the range of £3.6 million to £4.0 million.  Astley's EBITDA up to the point of sale is expected to be £1.1 million and, as this will now be reported within discontinued operations, the Group now expects EBITDA from continuing operations and before exceptional items to be in the range of £2.5 million to £2.9 million. 

 

 

28 October 2016

 

 

ENQUIRIES

 

 

 

entu

Ian Blackhurst, Chief Executive Officer

Neill Skinner, Chief Financial Officer

020 7457 2020

 

Zeus Capital Limited (Nomad & Broker)

Andrew Jones / Dan Bate

John Goold / Dominic King

020 3829 5000

 

Instinctif Partners (Public Relations)

020 7457 2020

Helen Tarbet

James Gray

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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