Last checked at 19 Dec 2017 07:00
19 December 2017
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Epwin Group Plc
("Epwin" or the "Group")
Disposal and New Supply Agreement
Epwin Group Plc, the low maintenance building products manufacturer, supplying businesses in the Repair, Maintenance and Improvement ("RMI"), new build and social housing sectors, announces that it has disposed of one of its subsidiaries, Indigo Products Limited to Indigo Acquisitions Limited.
Disposal
The disposal of Indigo Products Limited ('Indigo'), for total consideration of £1 to Indigo Acquisitions Limited, follows the insolvency of Entu (UK) Plc earlier this year. Indigo was primarily engaged in fabricating window frames for Entu (UK) plc, prior to that business entering administration. During the 10 month period to 31 October 2017, Indigo had revenues of £12.6 million and a loss before tax of £2.7 million. Gross and net assets disposed of were £1.3m and £0.2m respectively. Alongside the transaction, a new three year exclusive supply agreement for extruded plastic products has been agreed with the purchaser, the benefits of which will depend upon future order quantities.
Related Party Transactions
The Purchaser, Indigo Acquisitions Limited, is wholly owned by Brian Kennedy, who is also a shareholder of Epwin Group Plc. Consequently, these events represent related party transactions pursuant to Rule 13 of the AIM Rules for Companies. Epwin's directors consider, having consulted with its nominated adviser, that the terms of both the disposal transaction and the supply agreement are fair and reasonable insofar as its shareholders are concerned and have been negotiated at arm's length in the best interests of the Group.
Jon Bednall, Chief Executive Officer, commented:
"The disposal of the Indigo business and the associated three year supply agreement draw a line under the Entu (UK) plc insolvency for Epwin. The disposal is also important as part of the ongoing appraisal and actions being taken in respect of our on-going fabrication activities.
"We remain confident in meeting market expectations for the year ending 31 December 2017."
Contact information
Epwin Group Plc Jon Bednall, Chief Executive Chris Empson, Group Finance Director
| 0203 128 8100 |
Zeus Capital Limited (Nomad and Joint Broker) Nick Cowles / Jamie Peel John Goold / Dominic King
Panmure Gordon (UK) Limited (Joint Broker) Erik Anderson / Andrew Potts |
0161 831 1512 0203 829 5000
0207 886 2500 |
MHP Communications Reg Hoare / Charlie Barker |
0203 128 8100 |