Alumasc’s promised programme of disposals began last week with the sell-off of two small engineering operations in the West Midlands.
The company raised £900,000 from the sale of Wellings Forgings to Woodcote Industries and another £150,000 from the sale of Alumasc Tubular Products to Cavendish Industries.
Wellings, which operates drop hammer forges, recorded profits of £290,000 last year. The company’s net assets were worth £1.8m.
Alumasc Tubular Products made a £250,000 loss last year and another £100,000 deficit in the six months to the end of December.
Alumasc expects to make a total loss of £1.1m on the disposals. The company will take this as an exceptional charge against the 1998 accounts.
A spokesman for Alumasc said more disposals are planned. These will be predominantly in the engineering sector, rather than in the building products division.