7 June 2018 – disposal

The specialist engineering group has disposed of Hydraton Limited which comprised the group’s Engineered Products Division for up to £3.35m, with £1.1m cash consideration due immediately and a further £2.25m payable depending on the performance of the business in the year to 31 May 2019.  Hydraton has been severely impacted by the downturn in the oil and gas industry and it is felt that the business would do better as part of a larger group.  In the year to last September the business made a loss before tax of £0.47m on revenues of £3.85m.  Net assets of the business were £2.53m.  The proceeds of the sale will be used to reduce group debt.  With interim results due next week the shares remain a HOLD.