10th Nov 2008 12:15
10 November 2008
AVON RUBBER p.l.c.
("Avon", the "Group" or the "Company")
SALE OF UK MIXING FACILITY
In January we announced that we were commencing the closure of our UK mixing facility, a process which we were pursuing at the time of the announcement of the interim results in May.
We are now pleased to announce that the Group has completed the sale of certain of its mixing facility assets to ATR Compounding Limited for a consideration of £2.05 million, payable in cash. The proceeds will be used to reduce current borrowings.
The discontinued mixing business incurred an operating loss of £1.1 million in the year to 30 September 2007 on revenues of £7.0 million. The net book value of the assets disposed of at 31 March 2008 was £2.9 million.
Commenting, Peter Slabbert, Chief Executive said: 'Our decision to close the facility back in January followed a prolonged period during which the mixing business incurred considerable losses. I am delighted that through this process we have now managed to eliminate those losses and realise value for this asset.'
For further enquiries please contact:
Avon Rubber p.l.c:
Peter Slabbert, Chief Executive 01225 896830
Fiona Stewart, Corporate Communications Executive 01225 896871
Weber Shandwick Financial:
Nick Oborne 020 7067 0700
Clare Perks 020 7067 0700
NOTES TO EDITORS:
Avon Rubber p.l.c. is an international polymer engineering group adding value through material, manufacturing and industry sector expertise. For further information please visit the Group's website www.avon-rubber.com
Related Shares:
Avon Protection