REG - Alumasc Group Plc - Sale of Levolux

AlumascAnnouncement

26/08/2022 07:00

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RNS Number : 3048X  Alumasc Group PLC  26 August 2022

26 August 2022

The Alumasc Group plc

("Alumasc" or the "Group")

Sale of Levolux

Alumasc, the premium building products, systems, and solutions group,
announces that it has sold Levolux Limited ("Levolux") to Talrus Limited, a
company associated with Rcapital Partners LLP ("Rcapital"), a leading private
Investor.

Levolux, which formed part of Alumasc's Building Envelope division, designs,
manufactures, and installs solar shading systems, architectural solutions and
balconies that are used to enhance buildings and to provide shading solutions
to the public and commercial sectors. Its shading solutions reduce the impact
of sunlight for the occupiers and users of the internal environment.

Demand for new build architectural solutions has taken longer to recover from
the Covid-19 slowdown in Levolux's core UK and US markets, and in the year to
June 2022, the business recorded a loss of £2.0 million on sales of £7.8
million. After a review of the business and its prospects, the Alumasc Board
agreed that Levolux, with its focus on installation, was non-core and it would
be better positioned under new ownership. Rcapital is well placed to support
the Levolux business and management team to return the business to sustainable
profit.

The consideration receivable for the sale is £1,000,001 in cash, comprising a
nominal initial consideration of £1 together with £1,000,000 of deferred
consideration, which is repayable from proceeds in excess of £1,000,000
arising from any subsequent disposal of Levolux by Rcapital.

As a result of this transaction, a non-cash impairment charge of £14.9
million before tax will be taken in the Group's consolidated accounts for the
year to June 2022, comprising £11.1 million of goodwill and other intangible
assets and £3.8 million of tangible assets. Levolux is expected to hold £1.4
million of cash at the date of disposal, which will form part of the disposal.
As a consequence of the sale, Levolux's results for the year ended 30 June
2022 will be reported separately, as discontinued operations, within the
Group's consolidated annual results.

Paul Hooper, Alumasc CEO, said: "We are pleased to have sold Levolux to
Rcapital, and wish them and Levolux's employees well as they take the business
forward. This disposal completes Alumasc's transition to a supply-only
business focused on premium sustainable building products, systems and
solutions, and will allow our management team to focus on the organic and
inorganic growth opportunities within our core business".

Trading Update

Alumasc expects to announce results in line with the Board's expectations for
the year ended 30 June 2022 on 6 September 2022 and can confirm that trading
in the core activities of the Group during the second half of the year was
strong.   The activities of Levolux will be shown as discontinued in the
2022 results.

This announcement contains inside information for the purposes of Market Abuse
Regulation (Regulation (EU) No. 596/2014). The person responsible for making
this announcement on behalf of the Company is Helen Ashton, Group Company
Secretary.

 

END

Enquiries:

 

 The Alumasc Group plc

 Paul Hooper (Chief Executive)         +44 (0)1536 383844

 Simon Dray (Group Finance Director)

 Peel Hunt (Broker)

 Mike Bell                             +44 (0)207 418 8831

 Ed Allsopp

 finnCap (NOMAD)

 Julian Blunt                          +44 (0)207 220 0561

 Camarco

 Ginny Pulbrook                        +44 (0)203 757 4992

 Rosie Driscoll                        +44 (0)203 757 4981

                                       alumasc@camarco.co.uk (mailto:alumasc@camarco.co.uk)

The Alumasc Group plc

Station Road, Burton Latimer, Kettering, Northants NN15 5JP

LEI:  2138002MV11VKZFJ4359

Notes to Editors:

Alumasc is a UK-based supplier of premium building products, systems, and
solutions. Almost 80% of Group sales are driven by building regulations and
specifications (developers/housebuilders, architects, and structural
engineers) because of the performance characteristics offered.

 

The Group has three business segments with strong positions and brands in
their individual markets. The three segments are: Building Envelope; Water
Management; and Housebuilding Products.

 

 

 

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