The financial profile of B Elliott, the loss-making engineering systems and products specialist, is improved by the £9.25m coming in to cut borrowings from the just-announced sale of its Philidas fasteners business to Haden MacLellan.
With £6.6m of `non-equity’ capital included as part of the £17.25m shareholders’ funds, gearing is trimmed on a pro-forma basis from 114% to 33%.
The sale, which cuts borrowing from £13.7m to £5.7m, completes a shake-up of the group which has eliminated loss-makers and cut costs. This, according to Michael Frye, chief executive, has left the business `with a strong balance sheet, good cash generation characteristics, and a solid platform for the future’.
News of the sale came with figures showing Elliott had a rough time in the year to last March. Turnover at £110m was virtually unchanged from the year before, as operating profit fell 14% to £5.6m.
After £733,000 of redundancy payments and £3.2m of losses on disposals and closures, there was a loss at pre-tax level of just over £1m against a profit of £5m the year before.