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Anglo sells Charringtons for pounds 30m

John Shepherd
Tuesday 15 March 1994 00:02 GMT
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CHARRINGTONS, one of the best-known names in liquid fuels, has been sold by Anglo Group to Ludgate Sixty Nine, a new company, in a pounds 30m deal, writes John Shepherd.

The sale, which included the AW Saw kerosene distribution operation, will help Anglo reduce debts which remained high after restructuring its borrowings a year ago.

Anglo, which has chemicals businesses and owns the Falkland Islands Trading Company, said: 'With limited financial resources, Anglo believes it will be unable to develop fully the Charringtons businesses.'

In December, Anglo reported that its losses had been cut from pounds 22.6m to pounds 6.5m in the first half of 1992/3. Debts at the end of the six months to September were pounds 205m and had cost pounds 12.2m to service.

Yesterday's disposals had no impact on investment sentiment for Anglo, with the depressed shares unmoved at 3.5p.

Ludgate is led by Charringtons' management and financed by equity and debt provided principally by institutional investors led by the investment capital group 3i.

Managers and employees of Charringtons will hold a 25 per cent stake in Ludgate. David Clifford, managing director of Charringtons, will have 25,000 ordinary shares, equal to 2.84 per cent. In the year to last March, Charringtons made a profit before exceptional items of pounds 2.4m, on turnover of pounds 280m. Net assets at that date were pounds 12.6m.

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