Ensor Holdings plunges after unveiling plans to sell assets

Shares in Ensor Holdings plunged more than 20% early on Tuesday, after the manufacturer and supplier of building materials and packaging revealed it will be looking to sell assets once it completes a strategic review.

In the six months to 30 September, the group posted a 69.2% year-on-year increase in pre-tax profit to £2.2m, while revenue increased 15.9% to £19.7m.

However, despite the positive figures, after completing the strategic review it began in May, the London-listed company has concluded it will now focus on a series of trade sales, instead of looking to sell the entirety of its business.

A number of potential suitors have already begun negotiations with the group over its assets, the company said on Tuesday.

Ensor added it will buy an annuity to secure all future liabilities of its pension scheme, covering the £6m cost with short-term borrowings and the proceeds from the sales.

Ensor shares were down 20.64% to 86.90p at 0854 GMT on Tuesday.