Alumasc Sells Levolux, Sees Charge In FY22; Says FY Trading In Line With View; Stock Down
Alumasc Group PLC (ALU.L), a premium building products, systems, and solutions group, announced Friday that it has sold shading solutions provider Levolux Limited to Talrus Limited, a company associated with Rcapital Partners LLP. The company plans to record a charge in fiscal 2022.
Further, Alumasc expects to announce results in line with the Board’s expectations for the year 2022 on September 6. The company confirmed that trading in the core activities of the Group during the second half of the year was strong. The activities of Levolux will be shown as discontinued in the 2022 results.
Alumasc shares were losing around 5 percent in early morning trading in London.
In the deal, the consideration receivable for the sale is 1,000,001 pounds in cash, comprising a nominal initial consideration of 1 pound together with 1 million pounds of deferred consideration. This is repayable from proceeds in excess of 1 million pounds arising from any subsequent disposal of Levolux by Rcapital.
As a result of the sale, the company will record a non-cash impairment charge of 14.9 million pounds before tax for the year to June 2022. Levolux is expected to hold 1.4 million pounds of cash at the date of disposal, which will form part of the disposal.
Levolux formed part of Alumasc’s Building Envelope division. It designs, manufactures, and installs solar shading systems, architectural solutions and balconies that are used to enhance buildings and to provide shading solutions to the public and commercial sectors.
The company noted that demand for new build architectural solutions was very weak due to Covid-19 slowdown in Levolux’s core UK and US markets. In the year to June 2022, the business recorded a loss of 2.0 million pounds on sales of 7.8 million pounds.
The decision to sell the business was taken after a review, under which the Alumasc Board agreed that Levolux, with its focus on installation, was non-core and that it would be better positioned under new ownership.
In London, Alumasc shares were trading at 130 pence, down 4.76 percent.
Source: Read Full Article