Renew Holdings sells loss-making Forefront business

AIM-listed engineering services group Renew Holdings has sold its loss-making Forefront business to Ferns for a de-minimis consideration, exiting low pressure, small diameter gas pipe replacement activities.

As a result of the disposal, the consolidated results for the group will show a non-cash, balance sheet write-down of assets and intangible assets of around £9m relating to Forefront, which will be shown as an exceptional item in the accounts.

"There has been no improvement in the financial performance of Forefront since the start of this financial year and consequently, the decision has been taken to dispose of Forefront in order to allow management to focus on the continuing growth opportunities within the remaining parts of the group."

Forefront made a pre-tax loss of £2.8m in the last financial year.

Renew said on Monday that its financial performance remains in line with market expectations.

At 1240 GMT, the shares were down 1.9% to 358.25p.