Last checked at 5 Feb 2018 07:00
Renew Holdings plc
("Renew" or the "Group")
Disposal
Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces the disposal of Forefront Group Limited ("Forefront"), an engineering services business focused in the gas infrastructure market.
As previously announced, the Group made the decision to exit from the loss-making low pressure, small diameter gas pipe replacement activities with the expectation that the remaining business, now focussed on medium pressure activities, would return to profitability in the financial year ending 30 September 2018. However, there has been no improvement in the financial performance of Forefront since the start of this financial year and consequently, the decision has been taken to dispose of Forefront in order to allow management to focus on the continuing growth opportunities within the remaining parts of the Group.
Forefront has been sold to Ferns Group Limited ("Ferns") for a de-minimis consideration and in return Renew will bear no ongoing liability in respect of Forefront. As a result of this disposal, the consolidated results of the Group will show a non-cash, balance sheet write-down of assets and intangible assets of approximately £9m relating to Forefront which will be shown as an exceptional item in the Group's accounts. In the last financial year, Forefront made a pre-tax loss of £2.8m.
The financial performance of the Group remains in line with market expectations.
Enquiries:
Renew Holdings plc | Tel: 0113 281 4200 | ||
Paul Scott, Chief Executive | |||
Sean Wyndham-Quin, Group Finance Director | |||
Numis Securities Limited | Tel: 020 7260 1000 | ||
Stuart Skinner/ Kevin Cruickshank (Nominated Adviser) | |||
Michael Burke (Corporate Broker) | |||
Walbrook PR | Tel: 020 7933 8780 or renew@walbrookpr.com | ||
Paul McManus | Mob: 07980 541 893 | ||
Lianne Cawthorne | Mob: 07584 391 303 | ||
About Renew Holdings plc
Engineering Services, which accounts for over 80% of Group revenue and 90% 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 London and the Home Counties.
For more information please visit the Renew Holdings plc website: www.renewholdings.com