Renew shuts pumps business
Construction group Renew is closing its C&A Pumps subsidiary.
The company said that changes to water industry framework arrangements in AMP5 had made it ‘increasingly difficult for this small business to trade profitably’. Renew acquired the Durham-based business just four years ago.
C&A will be accounted for as a discontinued business in the year to 30 September 2012 and a trading loss of £0.3m, together with £0.3m of redundancy costs and £1.4m of non-cash asset write downs including £0.9m of goodwill, will be incurred.
Other restructuring and redundancies across the group has already costs the company £1.3m in the six months to 30 September 2012. However, trading has been satisfactory and when annual results are announced on 27 November they will be in line with expectations, the board said.
Paul Scott, managing director of Shepley Engineers, Renew’s nuclear and process business, has been promoted to engineering services director of Renew, reporting to the board through chief executive Brian May.
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This article was published on 01/10/2012 (last updated on 01/10/2012).