Business
£4m sale of Dyson Diecastings
£4m sale of Dyson Diecastings.
About this update from Alumasc Group Plc
[{"type":"text","content":"\n \nRNS Number : 8777C Alumasc Group PLC 30 June 2016 \n\nAnnouncement 30 June 2016\n \nThe Alumasc Group Plc (\"Alumasc\" or \"the group\")\nSale of Dyson Diecastings and trading update\n \n(a) Sale of Dyson Diecastings (\"Dyson\")\n \nAt the time of its interim results for the six months to 31 December 2015, published on 2 February 2016, the Alumasc Board announced that, in line with its strategy, it had initiated a process for the disposal of Dyson Diecastings, the group's last remaining Engineering Products business. Today, Alumasc is pleased to announce that it has completed the sale of the business and assets of Dyson to Broadways Stampings for net cash consideration of £4.0m, paid at completion, subject only to the finalisation of completion accounts. \n \nThe gross and net book values of assets sold is expected to be circa £3.9m and £3.2m respectively, giving rise to an expected gain on sale and consequential increase in group net assets of £0.8m, again subject to finalisation of completion accounts. Under the terms of the transaction, Dyson's legacy defined benefit pension obligations will be retained by Alumasc.\n \nIn the financial year ended 30 June 2015, Dyson reported revenues of £8.1m and an operating profit of £0.7m. Market and trading conditions for Dyson have been more challenging in the current financial year, and so the sale of Dyson is expected to be broadly earnings per share neutral to the group.\n \nWith the sale of Dyson, the group has achieved its strategic objective of becoming a focused supplier of niche building products, systems and solutions. This will enable management to concentrate solely on driving further profitable growth in these activities. The cash proceeds from the sale of Dyson will be re-invested to support this growth, including the intended purchase of new premises for Alumasc's Water Management Solutions business as it approaches full capacity over the next couple of years. \n \nPaul Hooper, Chief Executive of Alumasc, commented:\n \n\"I would like to thank the management and staff of Dyson for their positive contribution to Alumasc over many years and wish all of them and the business continued success under new ownership. \n \nThe sale of Dyson represents another key strategic milestone for Alumasc, which has been tran...