SIG said it was selling its contracting business – just for £1 initially – following disappointment with government policies that were meant to stimulate home improvements. SIG said that there had been “a significant downturn in market volumes due to the end of the Carbon Emissions Reduction Target scheme, subsequent lack of traction from the Green Deal and continued market uncertainty surrounding the Energy Company Obligation”.
Help-Link UK will pay a nominal initial cash consideration of £1, plus a deferred cash payment of £1.5m on 31 December 2016 and a further £6.5m in 2017 depending on the performance of Miller Pattison.
In addition, SIG is providing £5.3m in cash to Miller Pattison at completion.
Miller Pattison has 11 branches across the UK and 300 employees. For the 2013 financial year it had sales of £25.4m and made a loss before tax of £5.2m after incurring £2.1m of net restructuring costs and goodwill impairment. Gross assets were £29.3m and net assets were £15.6m as at 31 December 2013. SIG expects to incur an associated exceptional charge in 2014 of approximately £13m relating to the disposal.
SIG said that it remained committed to the development of its wider energy management and services offering in all its countries of operation.