Simon sells 'green' assets for 10.2m pounds
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Your support makes all the difference.SIMON Engineering is to sell its European environmental consultancy businesses to Northumbrian Water for pounds 10.2m. The disposal was flagged last August when Simon said it was pulling out of its 'green' operations, and follows the sale three weeks ago of its water and waste treatment activities to Thames Water, writes Tom Stevenson.
The businesses being sold are involved in environmental assessment, offshore safety and rural development. There are offices in the UK, France and Belgium. In the seven months to December, profits of pounds 700,000 were achieved from sales of pounds 13.6m.
Simon's US environmental consultancy, Simon Hydro-Search, was not included in the deal. A spokesman said Simon had received offers for the US operations but none was acceptable.
Taken together, the two disposals will reduce Simon's borrowings by about pounds 30m. Gearing will fall below 50 per cent. Brian Kemp, chief executive, said the sales 'will help Simon to focus on fewer, larger business sectors'. The shares added 2p to 137p.
The acquisition takes Northumbrian's exposure to non-regulated businesses to 20 per cent of sales. A spokesman said: 'We expect earnings growth from regulated operations to get increasingly hard to achieve.' Non-core operating profits in the half year to September rose 48 per cent.
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