Last checked at 3 Nov 2014 07:00
Renew Holdings plc
("Renew" or the "Group")
Disposal
Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces the disposal of Allenbuild Limited ("Allenbuild"), the New Build Affordable Housing part of Renew's Specialist Building business.
Allenbuild has been sold to Places for People Group Limited ("PFP") for a total consideration of £2.75m payable in cash. The sale is taking place in two tranches. PFP have acquired 50% of the issued share capital for £1.375m which has been paid in full. The second tranche whereby PFP will assume 100% ownership of Allenbuild will occur after ten outstanding contracts reach practical completion, which is expected to be in about twelve months' time.
During the joint ownership period, Renew will retain the benefit of these ten contracts and PFP will have the benefit of four new contracts and any further new work which Allenbuild subsequently procures. There are arm's length commercial agreements in place which will endure throughout the joint ownership period.
In its results for the year ended 30 September 2014, Renew will account for the results of Allenbuild as a discontinued business. The Board of Renew considers that the effect of this transaction will be to reduce reported Specialist Building revenue from continuing operations for the year ended 30 September 2014 by approximately £50m but that there will be no impact to the expected operating profit from continuing operations. The transaction is expected to have a similar impact on results from continuing operations for the year ending 30 September 2015.
Preliminary annual results will be announced on Tuesday 25 November 2014.
Enquiries:
Renew Holdings plc | Tel: 0113 281 4200 |
Brian May, Chief Executive | |
John Samuel, Group Finance Director | |
Numis Securities Limited | Tel: 020 7260 1000 |
Stuart Skinner (Nominated Adviser) | |
James Serjeant (Corporate Broker) | |
Walbrook PR | Tel: 020 7933 8780 |
Paul McManus | Mob: 07980 541 893 or paul.mcmanus@walbrookpr.com |
Bob Huxford | Mob: 07747 635 908 or bob.huxford@walbrookpr.com |
About Renew Holdings plc
Engineering Services, which accounts for over 70% of Group revenue and 80% of operating profit, focuses on the key markets of Energy (including Nuclear), Environmental and Infrastructure, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.
Specialist Building focuses on the High Quality Residential market in the South East of England.
For more information please visit the Renew Holdings plc website: www.renewholdings.com