Vulcan Industries Plc Disposal of IVI Metallics Limited

 
TIDMVULC 
 
31 August 2022 
 
                             Vulcan Industries plc 
 
                          ("Vulcan" or the "Company") 
 
                       Disposal of IVI Metallics Limited 
 
Vulcan Industries plc (AQSE: VULC) is pleased to announce that it has disposed 
of the entire share capital of IVI Metallics Limited ("IVI"). 
 
Disposal rationale 
 
IVI specialises in the manufacture of precision quality tacks and nails, 
(including threaded, hardened and plated products) both for the footwear, and 
other industries requiring the highest quality standards. IVI was significantly 
affected by COVID, with complete shut down during the initial lock down. 
Further local lockdowns compounded the delays in rebuilding the order pipeline 
and the balance sheet was eroded by the consequent losses. Following a review 
of the budget for the year ending 31 March 2023 the board have concluded that 
additional volume is required to enable the business to move back into 
profitability. In looking at options to acquire additional business, the 
Company received an approach, that will ensure the necessary investment is made 
to secure the future of IVI. Accordingly, the board have decided to dispose of 
the business to avoid continued cash outflows. 
 
In the interim accounts to 30 September 2021 IVI had net liabilities of £ 
458,000. The consideration from the disposal is £1.  The ultimate purchaser is 
acquiring the business and assets out of administration for £350,000 before 
costs which will go towards repaying some the Company's loans from Ablrate. 
Vulcan continues to provide a cross guarantee of the CBIL liability of which £ 
739,000 remains outstanding. 
 
Ian Tordoff, Executive Chairman, "Together with many smaller manufacturing 
companies, IVI struggled to sufficiently rebuild its order book following the 
period of restrictions during the pandemic. The disposal will assure the future 
for the business and its employees, reduce the Group's exposure to continued 
cash outflows and it will enable the Company to secure repayments to Ablrate" 
 
For further information, visit: https://vulcanplc.com 
 
The directors of Vulcan accept responsibility for this announcement. 
 
Contacts 
 
Vulcan Industries plc                             Via Vox Markets 
 
Ian Tordoff, Chairman 
 
First Sentinel Corporate Finance Ltd (AQSE        +44 7876 888 011 
Corporate Adviser) 
 
Brian Stockbridge 
 
Jenny Liu 
 
Vox Markets (Media and Investor Relations)        vulcan@voxmarkets.co.uk 
 
Kat Perez                                         +44 7881 622 830 
 
Paul Cornelius                                    + 44 7866 384 707 
 
About Vulcan 
 
Vulcan seeks to acquire profitable engineering and industrial businesses 
securing value by unlocking unrealised potential in standalone private 
companies. For more information visit https://www.voxmarkets.co.uk/listings/PLU 
/VULC 
 
Forward Looking Statements 
 
This news release may contain "forward-looking" statements and information 
relating to the Company. These statements are based on the beliefs of Company 
management, as well as assumptions made by and information currently available 
to Company management. The Company does not undertake to update forward-looking 
statements or forward-looking information, except as required by law. 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory 
Information Service, this inside information is now considered to be in the 
public domain. 
 
 
 
END

(END) Dow Jones Newswires

August 31, 2022 03:59 ET (07:59 GMT)

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