Vulcan Industries Plc - Disposal of IVI Metallics Limited
PR Newswire
London, August 31
31 August 2022
Vulcan Industries plc
("Vulcan" or the "Company")
Disposal of IVI Metallics Limited
Vulcan Industries plc (AQSE: VULC) is pleased to announce that it has disposed of the entire share capital of IVI Metallics Limited ("IVI").
Disposal rationale
IVI specialises in the manufacture of precision quality tacks and nails, (including threaded, hardened and plated products) both for the footwear, and other industries requiring the highest quality standards. IVI was significantly affected by COVID, with complete shut down during the initial lock down. Further local lockdowns compounded the delays in rebuilding the order pipeline and the balance sheet was eroded by the consequent losses. Following a review of the budget for the year ending 31 March 2023 the board have concluded that additional volume is required to enable the business to move back into profitability. In looking at options to acquire additional business, the Company received an approach, that will ensure the necessary investment is made to secure the future of IVI. Accordingly, the board have decided to dispose of the business to avoid continued cash outflows.
In the interim accounts to 30 September 2021 IVI had net liabilities of £458,000. The consideration from the disposal is £1. The ultimate purchaser is acquiring the business and assets out of administration for £350,000 before costs which will go towards repaying some the Company's loans from Ablrate. Vulcan continues to provide a cross guarantee of the CBIL liability of which £739,000 remains outstanding.
Ian Tordoff, Executive Chairman, "Together with many smaller manufacturing companies, IVI struggled to sufficiently rebuild its order book following the period of restrictions during the pandemic. The disposal will assure the future for the business and its employees, reduce the Group's exposure to continued cash outflows and it will enable the Company to secure repayments to Ablrate"
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 and industrial businesses securing value by unlocking unrealised potential in standalone private companies. 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.
