LONDON, UK: Vulcan Industries plc (AQSE: VULC) has disposed of the entire share capital of M&G Olympic Products Ltd (MGO) to OJT11 LTD.
M&G Olympic Products Ltd (MGO) specialises in the design, manufacture, and installation of custom-built architectural metalwork.
Since its acquisition in 2019, MGO has sought to evolve its quality fabrication activities in turnkey project delivery within larger construction projects. Whilst MGO has contributed to award winning projects, following the initial COVID lockdowns the business faltered in picking up from schemes that had enforced interruptions, incurring losses on a number of its larger projects.
With the recent acquisition of Aftech Limited, Vulcan Industries is seeking to focus its activities on the design and fabrication of bespoke product and to withdraw from providing complete solutions to the construction sector.
In the interim accounts to 30 September 2021 MGO had net liabilities of £825,000. Consideration from the disposal is £1 and its disposal will improve the Group balance sheet of Vulcan Industries plc.
Ian Tordoff, Executive Chairman, “Together with many smaller suppliers to the major construction companies, MGO struggled to balance the cash flow fluctuations across multiple large projects which placed strain on both its processes and its workforce. The disposal will enable Aftech to focus on building our bespoke fabrication business.”