LONDON, UK: Vulcan Industries plc (AQSE: VULC) has disposed of the entire share capital of Time Rainham Limited as the board have decided to dispose of the business to avoid continued cash outflows.

Ian Tordoff, Executive Chairman said together with many smaller suppliers to OEMs, Time Rainham had struggled to rebalance and build its order book in response to pressures from OEMs to source product overseas.

“Whilst we have reviewed a series of options to support its endeavors, the additional capital and working capital investment required to reach profitability cannot justified given the continued uncertainty in the market.”

Time Rainham has been manufacturing components for First Tier commercial OEM’s for over 70 years. It manufactures a vast range of components including selector forks, levers, valve housings, manifolds and blocks as well as complex gearbox transmission cases.

Following a review of the future production schedules and the working capital requirements of Time Rainham, the board have concluded that additional investment to increase capacity is required to enable the business to return to profitability.

The demand outlook remains uncertain, with the risk that the additional volumes required to justify the investment might not materialise for some time.

In the interim accounts to 30 September 2022 Time Rainham had net liabilities of £1.039 million. Consideration from the disposal is £1 and its disposal will improve the Group balance sheet of Vulcan Industries plc.

Vulcan seeks to acquire profitable engineering, manufacturing, and industrial businesses to enhance value unlocking growth which is not being achieved as a standalone private company.