Industrial group Charles Baynes is to relist on the stock market as a distribution company rather than an engineer following the sale of its aerospace parts manufacturing subsidiary Aeromet to a US company earlier this year.
The £42m deal means that apart from a small manufacturing presence in the flow control division, Charles Baynes is entirely concerned with distribution of parts. It has doubled its 40,000 sq ft Coventry distribution centre.
Executive director John Perkins said Aeromet’s sale reflects the view that the company was too small to play a meaningful role in the consolidation of the aerospace sector.
The group is now virtually ungeared after the sale of Aeromet and has £40-£50m to spend on bolt-on acquisitions in core business areas.
Half-time profits fell from £10.6m to £10.3m in line with a profit warning in July.