Molins, the international engineering and services company, announces that it is has entered into an agreement with Enthalpy Analytical, Inc (‘Enthalpy’), an affiliate of Montrose Environmental Group, Inc, for the sale of the trade and certain assets of its US based analytical services laboratory operation Arista Laboratories, Inc (“Arista”), for a consideration of $0.5m (£0.3m), which was paid in cash on completion. The sale represents the conclusion of the Company’s strategic review of this operation which commenced in February 2015 as previously reported.
In the year ended 31 December 2014 Arista generated revenues of £2.5m and incurred operating losses of £2.0m. The book value of its assets at 31 December 2014 was £2.8m. Enthalpy has assumed the obligations of the property lease of the premises from which Arista operates, the costs of which will be subsidised by the Group for a period of 18 months from completion, at a total cost of £0.4m payable in monthly amounts. The Group expects to incur a loss on this disposal of approximately £3.5m, of which £0.3m will be net cash payments, plus a £1.3m goodwill write-off.
As previously reported, trading in the rest of the Scientific Services division is more challenging than expected, with tobacco sector conditions remaining difficult. The Packaging Machinery division, however, continues to trade ahead of last year and with Arista being treated as a discontinued operation in 2015, the Board expects the underlying trading performance of the Group for the year to be slightly ahead of current expectations.
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