Epwin sells Indigo Products for £1 after Entu collapse

Low-maintenance building products manufacturer Epwin Group has disposed of one of its subsidiaries, Indigo Products, to Indigo Acquisitions, it announced on Tuesday.

The AIM-traded firm said the disposal of Indigo Products, for total consideration of £1, to Indigo Acquisitions, followed the insolvency of Entu UK earlier in the year.

Indigo was primarily engaged in fabricating window frames for Entu, prior to that business entering administration.

During the 10-month period to 31 October, Indigo had revenues of £12.6m and a loss before tax of £2.7m.

Gross and net assets disposed of were £1.3m and £0.2m respectively.

Alongside the transaction, a new three-year exclusive supply agreement for extruded plastic products had been agreed with the purchaser, the benefits of which would depend upon future order quantities.

Epwin’s board noted that the purchaser, Indigo Acquisitions, is wholly owned by Brian Kennedy, who is also a shareholder of Epwin Group.

The company’s directors said they considered, having consulted with their nominated adviser, that the terms of both the disposal transaction and the supply agreement were fair and reasonable insofar as shareholders were concerned, and had been negotiated at arm's length in the best interests of the group.

“The disposal of the Indigo business and the associated three year supply agreement draw a line under the Entu insolvency for Epwin,” said chief executive Jon Bednall.

“The disposal is also important as part of the ongoing appraisal and actions being taken in respect of our on-going fabrication activities.

“We remain confident in meeting market expectations for the year ending 31 December 2017.”