LONDON (Alliance News) - Building and engineering products company Alumasc Group PLC Wednesday said it has sold the assets of Pendock, its pre-formed plywood pipe-boxing arm, for GBP1.5 million in cash.
The assets are being acquired by Davidson Holdings Ltd. Employees of Pendock will transfer with the business, and Davidson said it will continue the operation of the business from its Telford factory.
Pendock generated revenue of GBP3.1 million in the year to June 30, with operating profit of GBP0.3 million.
"The disposal of Pendock is consistent with the board's stated objective of focusing management and financial resources on developing core activities," said Alumasc Chief Executive Paul Hooper.
"The consideration received from the sale will be used to accelerate the expansion of Alumasc's market leading sustainable building product activities, where growth rates have exceeded UK construction market averages in recent years," Hooper added.
Alumasc shares were up 1.1% at 133.00 pence early Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Alumasc Group (ALU)