Spice offloads gas arm
YORKSHIRE utility services provider Spice has announced the disposal of its loss making gas business.
Spice said the sale, to Booth Securities, would result in the “elimination” of a business which chief executive Martin Towers described as a “drain on resources”.
Leeds-based Spice, which sold its telecoms business Team Telecoms Group in a £32.8m deal aimed at reducing the group’s debt last month, said the latest disposal would allow it to focus on its supply and distibution businesses.
Booth Securities has not paid anything for the business, which maintains and repairs gas boilers and heating systems.
Mr Towers said: “During the past two years, the gas business has been a material distraction for the group and a drain on resources.
“Today’s announcement draws a line under these issues. This disposal is a significant milestone and follows quickly on the heels of the sale of the telecoms business.
“Spice is now able to move forward with a higher degree of focus on its core utilities and energy markets which have strong underlying regulatory and environmental drivers.
“We have made significant strides forward in recent months and the board is confident that further progress is being made to restore shareholder value.”
Spice’s gas business had revenues of £34.3m for the year ended April 30 and a loss before tax of £6.4m, arising from trading activities.
Aggregated gross assets for the business were approximately £10.4m.
The latest disposal follows Spice’s recent strategy of offloading businesses rather than acquiring them, an approach favoured by previous chief executive Simon Rigby, who left in February.
