19th Sep 2014 08:41
LONDON (Alliance News) - Associated British Engineering PLC Friday said it has appointed a new Chairman as the company's principal trading subsidiary reported sluggish performance in the year so far and said it would incur further losses in the current financial year from its Akoris Trading Ltd subsidiary.
The company said David Thomson has been appointed as the new chairman of the company, with David Brown resigning from the role. Brown has also resigned as a director of the group and is to be replaced by Rupert Pearce Gould, the Chairman of its British Polar Engines Ltd subsidiary.
British Polar Engines, the main operating subsidiary for ABE, is seeing trading below expectations this year, the company said. It said the trading environment for the subsidiary remains competitive.
ABE said its Akoris Trading arm, in which it holds a 50% stake, has failed to sufficiently develop volumes in core areas required to sustain its infrastructure. Due to this, ABE has not agreed to advance further funds to the company and Akoris is now working to sell the remaining stock it is holding.
ABE said that based on the numbers currently available from Akoris, ABE will incur further trading loss in the current financial year and will write off the remainder of its equity investment in Akoris, totalling GBP57,798.
ABE shares were up 3.9% on Friday to 135 pence per share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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