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31 Jul 2012 12:39
Pochin's PLC ("the Company")
Disposal of group's concrete pumping business
The Board of Pochin's PLC is pleased to announce that it has today completed the sale of its concrete pumping business, Pochin Concrete Pumping Limited, to Alcedo Limited ("Alcedo") (the "Disposal"). The initial consideration payable by Alcedo is £1 with further potential deferred consideration of up to £1.0m. The Company and Alcedo have also entered into certain other commercial arrangements in respect of the Disposal, including the assignment of an intra-group loan of not less than £1.0m due from Pochin Concrete Pumping Limited to the Company.
The decision to dispose of the loss making concrete pumping business was announced with the results for the year ending 31 May 2011 and the Board is pleased that the process has now reached a successful conclusion.
The Board believes that the Disposal is in the best interests of the shareholders and the Company as a whole, as it will improve the underlying performance and sustainability of the group. The Disposal will also enable the Company's management to focus on the two core areas of the group's activities, namely construction and commercial property investment and development.
The value of the gross assets of the concrete pumping business as at 31 May 2012 was £3.7m (net £1.2m) and the loss on ordinary activities before tax for the year ending 31 May 2012 was £1.4m.
The transaction constitutes a Class 2 transaction for the purposes of the UKLA Listing Rules and as such shareholder approval is not required.
Pochin's PLC were advised by the Manchester offices of Grant Thornton and Weightmans.
Richard Fildes, Chairman of the Company, commented "I am pleased to be able to report the sale of the concrete pumping business. As outlined in recent announcements, this disposal will allow the Company to return to its original model of building and construction with commercial property investment and development. We wish the management team and the employees of the concrete pumping business all the best for the future".
Date: 31 July 2012
For further information please contact:
Enquiries:
Pochin's PLC
John Moss, Chief Executive 01606 833 333
John Edwards, Finance Director
Charles Stanley Securities
Russell Cook/Carl Holmes 020 7149 6000
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