Vulcan Industries Plc - Disposal of Orca Doors Limited
PR Newswire
London, July 18
18 July 2022
Vulcan Industries plc
("Vulcan" or the "Company")
Disposal of Orca Doors Limited
Vulcan Industries plc (AQSE: VULC) is pleased to announce that it has disposed of the entire share capital of Orca Doors Limited ("Orca").
Disposal rationale
Orca specialises in the design, manufacture, and installation of custom-built fire doors in the health, education and public infrastructure sectors. The sector suffered significantly, with complete shut down during the initial COVID lock down. Further lockdowns compounded the delays in rebuilding the order pipeline. Following a review of the budget for the year ending 31 March 2023 the board have concluded that additional investment to increase capacity is required to enable the business to move into profitability. The demand outlook, whilst improving, remains uncertain, with the risk that the additional volumes required to justify the investment might not materialise for some time. Accordingly, the board have decided to dispose of the business to avoid continued cash outflows.
In the interim accounts to 30 September 2021 Orca had net liabilities of £751,000. Consideration from the disposal is £1 and its disposal will improve the Group balance sheet of Vulcan Industries plc.
Ian Tordoff, Executive Chairman, "Together with many smaller suppliers to the construction industry, Orca struggled to sufficiently rebuild its order book following the period of restrictions during the pandemic. Whilst we have reviewed a series of options to support its endeavors, the additional capital and working capital investment required to reach profitability cannot justified given the continued uncertainty in the market."
For further information, visit: https://vulcanplc.com
The directors of Vulcan accept responsibility for this announcement.
Contacts
| Vulcan Industries plc | Via Vox Markets |
| Ian Tordoff, Chairman | |
| First Sentinel Corporate Finance Ltd (AQSE Corporate Adviser) | +44 7876 888 011 |
| Brian Stockbridge | |
| Jenny Liu | |
| Vox Markets (Media and Investor Relations) | vulcan@voxmarkets.co.uk |
| Kat Perez | +44 7881 622 830 |
| Paul Cornelius | + 44 7866 384 707 |
About Vulcan
Vulcan seeks to acquire profitable engineering, manufacturing, and industrial businesses to enhance value unlocking growth which is not being achieved as a standalone private company. For more information visit https://www.voxmarkets.co.uk/listings/PLU/VULC
Forward Looking Statements
This news release may contain "forward-looking" statements and information relating to the Company. These statements are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
