Renew Holdings PLC Disposal (8369D)
05 February 2018 - 6:00PM
UK Regulatory
TIDMRNWH
RNS Number : 8369D
Renew Holdings PLC
05 February 2018
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
GBP9m 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 GBP2.8m.
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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