News blog
Water Hall Group
- BY: Andrew Hore |
- POSTED: 09/03/2011 |
Quarry operator Water Hall Group has sold a non-core asset for a gain of £160,000.
The company was not generating any significant income from the freehold of Pollards Quarry, which is a site of around 46 acres. The site has been restored and the land used for agriculture. Water Hall received £237,000 in cash, before any costs. Water Hall has surrendered the associated waste management licence to the Environment Agency and been repaid its aftercare deposit of nearly £15,000.
At the end of 2010, Water Hall sold the freehold of Bunkers Hill for £475,000 to Frank Lyons Plant Services. The surplus over book value was £275,000. The cash impact of restoration costs at Southfield Wood will be reduced by £500,000 because FLPS will carry out the work as part of the purchase contract.
Bunkers Hill made an operating profit of £479,000 in 2009 and £267,000 in the first half of 2010. The site generated £1.5m of Water Hall’s £1.53m of revenues in 2009 but only has capacity for just over one more year. Water Hall still has option rights over nearby land.
Water Hall has signed a contract with CLP Envirogas to use gas from Southfield Wood to generate electricity. CLP will install gas pipes on the site. This is still some way from generating revenues.
Water Hall also has an eight acre Materials Recovery Facility, which is not in operation, but which has planning consent until 2014 and could be reactivated if there is an opportunity.
At 2.5p a share, Water Hall is valued at £1.42m. The net asset value was £2.91m at the end of June 2010. The disposal gains can be added to this but there will be corporate running costs to offset against that.
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