Listed company completes £2.5m disposal deal
Wakefield-based manufacturer Carclo has disposed of an asset of its loss-making subsidiary Wipac division.
As part of the previously announced strategy to refocus Wipac back on its historic low-volume high-end vehicle markets, some mid-volume programmes are being moved by customers to alternative suppliers.
A statement released by Carclo this afternoon said: “In respect to one of these moves, a specialist assembly line has been acquired by the associated customer. The customer paid £1.4m directly to a finance lease company for the elements of the line owned by them and £1.1m to Wipac for those elements of the line owned by the Company. A £0.4m loss was recorded on the sale.
“Separately, a payment of 3.4m Euros was received in respect of outstanding design and development balances.
“Discussions remain ongoing regarding a potential sale of the Wipac business.”
Earlier this month, Carclo called a general meeting to react to news that the value of its net assets was less than half of its called-up share capital.
The business makes fine tolerance injection moulded plastic parts mainly for the medical, automotive lighting and optics markets.