17th Aug 2018 16:52
LONDON (Alliance News) - Asset and energy support services company Lakehouse PLC said Friday it has sold its construction and property services divisions to Mapps Group Ltd for up to GBP1.5 million.
Mapps, a newly-formed entity, will initially pay up to GBP500,000 for divisions Lakehouse Contracts Ltd and Foster Property Maintenance Ltd. The total pay-out is dependent on the performance of both divisions in the six months after the sale.
Depending on performance over the next two years, a further GBP1.0 million could be paid to Lakehouse for the divisions.
"The parties will also work together over the 24 months following the sale to collect working capital sums outstanding at completion," Lakehouse said in a statement.
In the year to September 2017, the two divisions recorded GBP108.8 million in underlying revenue from continuing activities and underlying earnings before interest, taxation, and amortization of GBP300,000.
"I am delighted with the sale, which will allow the group to focus on its compliance and energy services activities. Both are businesses where we have strong market positions, which help underpin more predictable and profitable revenue streams," said Lakehouse Executive Chairman Bob Holt.
The energy services company also said expectations for its current financial year to September 30 are still in line with board expectations and that any profit from the sale will be used for future growth plans.
Shares in Lakehouse closed at 41.00 pence each, up 2.50%.