The company has announced a useful disposal of its Facades business that has been generating low margins and experiencing a decline in its end market. The sale of Facades for an initial cash consideration of £4.5m is modestly EPS dilutive by 6.4% in 2020, but improves operating margins and frees up cash resources to generate better returns once it is re-invested in the group’s growth products. It also offers the possibility of some consolidation benefits. We consider this to be a
01 Nov 2018
Alumasc - Disposal of Facades business
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Alumasc - Disposal of Facades business
Alumasc Group plc (ALU:LON) | 172 0 0.0% | Mkt Cap: 62.3m
- Published:
01 Nov 2018 -
Author:
David Buxton -
Pages:
4
The company has announced a useful disposal of its Facades business that has been generating low margins and experiencing a decline in its end market. The sale of Facades for an initial cash consideration of £4.5m is modestly EPS dilutive by 6.4% in 2020, but improves operating margins and frees up cash resources to generate better returns once it is re-invested in the group’s growth products. It also offers the possibility of some consolidation benefits. We consider this to be a