Vulcan Industries Plc - Disposal of Time Rainham Limited PR Newswire

15 November 2022

Vulcan Industries plc

(“Vulcan” or the “Company”)

Disposal of Time Rainham Limited

Vulcan Industries plc (AQSE: VULC) is pleased to announce that it has disposed of the entire share capital of Time Rainham Limited (“Time Rainham”).

Disposal rationale

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. Accordingly, the board have decided to dispose of the business to avoid continued cash outflows.

In the interim accounts to 30 September 2022 Time Rainham had net liabilities of £1,039,000. 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 OEMs, Time Rainham has 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.”

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 Corporate Adviser) +44 7876 888 011
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, manufacturing, and industrial businesses to enhance value unlocking growth which is not being achieved as a standalone private company. 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.