Corporate News

Half-Year Trading Update & Sale of Property in Canada

Half-Year Trading Update

 

The Company announces the following trading update ahead of its unaudited interim results for the six months ending 30 June 2017 to be announced in September 2017.

 

As described in the shareholder circular dated 8 June 2017 (“Circular”) regarding the Proposed Sale of the Instrumentation and Tobacco Machinery division (“I&TM”), Molins entered the 2017 financial year with an order book that was substantially stronger than at the start of 2016, with the increase arising in the Packaging Machinery division.  The first part of the year has resulted in order intake in all parts of Molins being at levels ahead of the same period last year.  In particular, order intake in the Continuing Group (i.e. excluding I&TM) at the end of May 2017 was considerably ahead of order intake for the same period last year.  Trading is as expected and ahead of last year in all parts of the Continuing Group.

 

Sale of Property in Canada (“Sale”)

Molins PLC’s Canadian subsidiary company, Langen Packaging Inc (“Langen”), entered into an unconditional agreement on 16 June 2017 to sell its manufacturing facility at 6154 Kestrel Road, Mississauga, Ontario to BuildCorp Limited, a company incorporated in Canada, for a gross consideration of C$11.7 million (£6.7 million) payable in cash on completion (save that a deposit has been paid of C$0.5 million (£0.3 million)).  Net proceeds, after fees and taxes, are expected to be approximately C$10.2 million (£5.9 million).  The book value of the asset subject to the Sale as at 31 December 2016 was C$2.6 million (£1.5 million).  Completion of the transaction is expected to take place by the end of November 2017.

 

Langen is to enter into a 10 year contract to lease a newly built facility, approximately 8 miles from its current location, still in Mississauga, Ontario, from an independent third party at an annual cost of approximately C$0.6 million (£0.35 million).  The lease term and payments will commence from 1 November 2017.  Langen is expected to start its move into the new building in the fourth quarter of the year, to coincide with its departure from its existing building.  Langen is expected to spend approximately C$1.7 million (£1.0 million) to adapt the building to its needs.

 

The balance of the proceeds from the Sale is expected to be used for the development of the Company in line with its strategic objectives.

 

Tony Steels, Molins Chief Executive, commented:

“The new facility will provide Langen with a superb new environment from which to operate, including a customer showroom to showcase our capabilities and assembly and acceptance facilities that will enable Langen to serve its customers even more effectively, whilst providing our employees with a workplace to be proud of.  This will be a platform for growth to assist in our strategic objectives in the Americas.”

 

  

 

For further information, please contact:

Molins PLC

Tony Steels, Chief Executive

David Cowen, Group Finance Director

Tel: +44(0)1908 246870

 

Panmure Gordon (UK) Limited (NOMAD) 

Andrew Potts, Peter Steel – Corporate Finance

James Stearns – Corporate Broking

Tel: +44(0)20 7886 2500

 

Hudson Sandler

Nick Lyon, Jasper Bartlett

Tel: +44(0)20 3178 6378

Director Dealings and Holdings in Company – 16 June 2017

Click to view Director Dealings and Holdings in Company – 16 June 2017

Grant of Options

Grant of Options. Notification and public disclosure of transactions by persons discharging managerial responsibilities (PDMR") and persons closely associated with them.

 

Proposed Sale of Molins Instrumentation & Tobacco Machinery division

Molins, the global packaging solutions group, today announces that it has entered into a conditional agreement with G.D S.p.A., a wholly owned subsidiary of Coesia S.p.A., to sell its Instrumentation & Tobacco Machinery division.

 

Click on the following link to view the announcement: Proposed Sale of Molins Instrumentation & Tobacco Machinery division

 

Click on the following link to view the Circular: Proposed sale of I&TM 08.06.17 - Circular