Business
Sale of Building Products Manufacturing Businesses
Sale of Building Products Manufacturing Businesses.
About this update from Eleco Plc
[{"type":"text","content":"\n \nRNS Number : 0822G Eleco PLC 03 June 2013 \n\n \n \nFor immediate release at 07:00 on 3 June 2013\n \n \n \nEleco plc\n(\"Eleco\" or the \"Group\")\nThe Construction Software and Building Systems Group\n \n \nSale of ElecoBuild's Building Products Manufacturing Businesses\n(\"the businesses\")\n \nThe 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. \n \nThe 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.\n \nBased 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.\n \nThe 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.\n \nIn 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.\n \nFor further information please contact:\n\n\n\n\nEleco plc\n\n\n0207 422 0044\n\n\n\n\nJohn Ketteley, Executive Chairman\n\n\nwww.eleco.com\n\n\n\n\nMatthew Turner, Group Finance Director\n\n\n\n\n\n\n\nPeckwater PR - Tarquin Edwards\n\n\n0207 808 7340\n\n\n\n\nCenkos Securities plc...