24th Mar 2014 10:40
LONDON (Alliance News) - Augean PLC Monday said it has finally reached a deal to dispose of its struggling waste network division for a total of GBP1.2 million, but warned it will incur an exceptional impairment charge of GBP4 million for 2013 as a result, because the proceeds are less than the carrying value of the relevant assets and goodwill held by the group in December.
The firm will publish its full 2013 results on Tuesday.
Last year, the firm said it planned to sell the division which resulted in numerous expressions of interest to acquire all or part of the business and several offers from potential purchases.
The business ceased operations within Augean on January 2, it said. However certain assets were retained to form a new business - Augean Integrated Services (AIS). The AIS operations are based at Cannock in the west Midland, initially supporting a small number of clients requiring total waste management services.
Augean on Monday said two separate deals have now been completed for the sale of the remaining businesses.
The first of these transactions related to the business, site and assets based at Hinckley, which have been sold to Greenway Environmental Ltd in a deal worth GBP400,000.
A second transaction, with Cleansing Service Group Limited, for the business based at Rochdale and a site at Worcester, was for GBP800,000.
Augean shares were trading at 47.78 pence Monday morning, up 0.78 pence or 1.7%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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