Green Compliance is selling part of its fire protection business to Aim-quoted London Security for £2m.
The water, fire and pest control compliance services provider is selling its portable fire appliances, fire alarms, fire risk assessment and training operations, which generated annual revenues of £2.3m and lost £900,000, but retaining the fire suppression and fire extinguisher recycling operations. Green Compliance will still market the services of the operations sold.
London Security is paying an initial £1.5m with a further £500,000 deferred for 12 months and dependent on the achievement of revenue and operation targets. Following the receipt of the initial consideration Green Compliance will have net debt of £7m. A £9m revolving credit facility will last until the end of 2013 and net debt was near to this limit prior to the disposal. New facilities and relevant covenants are being negotiated.
At 2.03p a share, up 0.13p, Green Compliance is valued at £2.56m. This disposal has pushed the share price back above January’s placing and open offer price of 2p a share.
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