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LONDON (Alliance News) - Alumasc Group PLC on Thursday reported the sale of its Facades business to Kilwaughter Minerals Ltd for up to GBP6.0 million in cash.
The building & engineering products supplier will initially receive GBP4.5 million in cash with a further GBP1.5 million based on the performance of the business during the year following the sale.
Alumasc will use the proceeds of the sale to support the ongoing investment in its strategic growth initiatives.
The Facades business supplies exterior wall insulation systems. However, Alumasc explained that this market has "reduced in size following the cuts in funding" provided by the government's ECO and Green Deal schemes in recent years.
For the year ended June 30, the Facades business generated revenue of GBP11.1 million and made an operating profit contribution to group overheads of GBP600,000.
Alumasc shares were trading down 0.9% at 126.80 pence each.