AssetCo reveals bid talks

Outsourced fire services provider AssetCo has confirmed that it is in talks with a potential bidder. Shares in AssetCo jumped 8p to 59.5p when trading commenced this morning. That is still little more than one-third of the peak share price in 2007. However, AIM-quoted AssetCo says that it is not JO Hambro as had been said in a Sunday Times article. AssetCo, whose nominated adviser and broker is Arden, has appointed Evolution to advise it on the bid talks. Three non-core businesses were sold just before Christmas for £5.25m, £1m of which is deferred until March 2011 and is based on turnover and profitability levels. This completed the sale of non-core assets. Net debt was £77.1m at the end of September 2010. AssetCo has outsourcing contracts with the London Fire Brigade and the Lincolnshire Fire Brigade. It had hoped to secure more UK contracts but they have been slow in coming through. AssetCo has secured other contracts in the Middle East.