Renew Holdings PLC Disposal (8369D)

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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: [phone] 
 Paul Scott, Chief Executive 
 Sean Wyndham-Quin, Group 
  Finance Director 
 
 Numis Securities Limited                                        Tel: [phone] 
 Stuart Skinner/ Kevin Cruickshank 
  (Nominated Adviser) 
 Michael Burke (Corporate 
  Broker) 
 
 Walbrook PR                             Tel: [phone] or [e-mail] 
 Paul McManus                                                    Mob: [phone] 
 Lianne Cawthorne                                                Mob: [phone] 
 
 

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

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February 05, 2018 02:00 ET (07:00 GMT)