8th Jan 2016 07:46
LONDON (Alliance News) - Insurance technology company Watchstone Group PLC on Friday said its Brand Extension (UK) Ltd subsidiary has agreed a deal to sell BE Insulated (UK) Ltd and Carbon Reduction Co (UK) Ltd to The BE Smart Group Ltd for a nominal consideration of GBP1.00.
Watchstone said the sale of the property insulation supply and property maintenance businesses should cut its costs by GBP1.5 million to GBP2.0 million a year. It said both business have been performing below expectations and have been loss-making.
It will make a loss on the sale of around GBP4.2 million for the year to the end of December 2015, which has already been accounted for in the company's first-half results for last year.
BE Smart Group is owned by Ben Williams, a director at Brand Extension.
"The strong focus on quickly addressing losses is central to our work and we've been making good progress overall. We've acted with integrity and speed to realise significant cost savings, while removing liabilities and enabling us to continue with the further work on the transformation of Watchstone," said Indro Mukerjee, Watchstone's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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