Disposal of G E Bissell & Co

17 Jan 2005 16:38

Alumasc Group PLC17 January 2005 THE ALUMASC GROUP PLC Disposal of G E Bissell & Co / Interim Announcement Date Alumasc, the high specification engineering and building products group,announces the sale on 14 January 2005 of the business and certain assets of G EBissell & Co ("Bissell"), to a private company. Bissell manufactures andsupplies spring pins and disc springs. Bissell lost £0.2 million on turnover of£2.95 million in the year to 30 June 2004 and has remained in loss during thefirst 6 months of the current financial year. Chief Executive Paul Hooper stated: "This transaction has enabled the Group todispose of a small, loss-making, non-core business which will generate cash forour stated plan to focus development on our core activities of PrecisionComponents and Specification Building Products where acquisitions were announcedin July and September 2004." The sale comprises an initial payment for goodwill, together with an option topurchase plant and equipment. The purchaser will pay for stock over a period of6 months at a rate and value dependent on usage. During this time, Alumasc willliquidate the remaining working capital. Ownership of the freehold site will beretained by Alumasc. The assets subject to the transaction, including working capital, have a bookvalue of£1.5 million and are expected to realise £1 million in cash before costs of £0.2million. The freehold site will be written down by £0.3 million to its estimatedmarket value of£0.5 million. Alumasc intends to account for this transaction in its accountsfor the half year ended 31 December 2004 as a discontinued business. The cash released by the transaction will be used for developing the Group'score business. Alumasc intends to announce its Interim Results for the 6 months ended 31December 2004 on 10 February 2005. Enquiries: The Alumasc Group plc 01536-383 844John McCall (Chairman)Paul Hooper (Chief Executive) Bankside Consultants LimitedCharles Ponsonby 020-7444 4166 This information is provided by RNS The company news service from the London Stock Exchange