Manchester-based Carbo, the newly refocused industrial abrasives manufacturer and distributor, which this week sold the final part of its Bryan Donkin Engineering subsidiary, has said it would also sell its Carbo plastics and Polybau operations if the right offers came along.
Carbo, which changed its name from Hopkinsons this year, said it would raise £2.06m from the sale of its Chesterfield foundry to a private investor group. Compressors went in February and Valves in June.
Interim pre-tax profits announced last week for the year to August were £701,000, up from £411,000 last time, boosted by exceptional credit from the disposal of these two engineering businesses.
Carbo has made savings through integrating and consolidating its abrasive distribution business after acquiring Noble Macaulay, the distributor of industrial abrasives, in March.
Carbo’s decision to focus on abrasives has seen those margins increase to 3.9% this year. Ken Jackson, chief executive, is aiming for 5%.
The other businesses, plastics and polybau, are generating good profits, said Jackson, while admiting that these could eventually be sold off.
Carbo Plastics, a technical trade injection moulder with five UK manufacturing sites, supplies the white goods industry. Although the business experienced a downturn in activity at its Scottish factory following the loss of a customer, this was, said the company, partly offset by solid performances at the other plastics factories. It has margins of 8 10%.
Polybau, which produces polyester concrete surface drainage channels in the UK and Switzerland, also returned to profit this year.