Pochin’s sells concrete business for £1
Cheshire-based Pochin's has completed the sale of Pochin Concrete Pumping to Alcedo for £1, with potential for the price to rise to £1m.
The terms of the sale include the assignment of a loan of not less than £1m due from Pochin Concrete Pumping to the Pochin's group.
Pochin's said in a statement: "The decision to dispose of the loss making concrete pumping business was announced with the results for the year ending 31 May 2011 and the Board is pleased that the process has now reached a successful conclusion.
"The board believes that the disposal is in the best interests of the shareholders and the company as a whole, as it will improve the underlying performance and sustainability of the group. The disposal will also enable the company's management to focus on the two core areas of the group's activities, namely construction and commercial property investment and development."
The value of the gross assets of the concrete pumping business as at 31 May 2012 was £3.7m (net £1.2m) and the loss on ordinary activities before tax for the year ending 31 May was £1.4m.
Richard Fildes, chairman of Pochin's, commented: "I am pleased to be able to report the sale of the concrete pumping business. As outlined in recent announcements, this disposal will allow the Company to return to its original model of building and construction with commercial property investment and development. We wish the management team and the employees of the concrete pumping business all the best for the future."
Pochin's was advised by the Manchester offices of Grant Thornton and Weightmans.