Disposal of G E Bissell & Co / Interim Announcement Date
Alumasc, the high specification engineering and building products group, announces the sale on 14 January 2005 of the business and certain assets of G E Bissell & Co (“Bissell”), to a private company. Bissell manufactures and supplies spring pins and disc springs. Bissell lost £0.2 million on turnover of £2.95 million in the year to 30 June 2004 and has remained in loss during the first 6 months of the current financial year.
Chief Executive Paul Hooper stated: “This transaction has enabled the Group to dispose of a small, loss-making, non-core business which will generate cash for our stated plan to focus development on our core activities of Precision Components and Specification Building Products where acquisitions were announced in July and September 2004.”
The sale comprises an initial payment for goodwill, together with an option to purchase plant and equipment. The purchaser will pay for stock over a period of 6 months at a rate and value dependent on usage. During this time, Alumasc will liquidate the remaining working capital. Ownership of the freehold site will be retained by Alumasc.
The assets subject to the transaction, including working capital, have a book value of £1.5 million and are expected to realise £1 million in cash before costs of £0.2 million. The freehold site will be written down by £0.3 million to its estimated market value of £0.5 million. Alumasc intends to account for this transaction in its accounts for the half year ended 31 December 2004 as a discontinued business.The cash released by the transaction will be used for developing the Group’s core business.Alumasc intends to announce its Interim Results for the 6 months ended 31 December 2004 on 10 February 2005