Pochin’s sells loss-making concrete division

CONSTRUCTION and development group Pochin’s has agreed to sell its loss-making concrete pumping business to its managment team for £1, rising to £1m.

The AIM-listed group said last year that it planned to sell the unit, which in the 12 months to the end of this May made a loss of £1.4m.

A team from Grant Thornton corporate finance in Manchester and from law firm Weightmans advised Pochin’s on the sale to a the newly-formed Alcedo which is made up of the concrete pumping division’s management team.

The value of the gross assets of the business being disposed at May 31 was £3.7m (net £1.2m).

Pochin’s said: “The board believes that the disposal is in the best interests of the shareholders and the company as a whole, as it will improve the underlying performance and sustainability of the group.

“The disposal will also enable the company’s management to focus on the two core areas of the group’s activities, namely construction and commercial property investment and development.
 
Chairman Richard Fildes, added: “As outlined in recent announcements, this disposal will allow the Company to return to its original model of building and construction with commercial property investment and development.

“We wish the management team and the employees of the concrete pumping business all the best for the future”.