Jobs saved for now as Augean sells Colt assets

The AIM-traded firm described Colt as an industrial services provider to a range of customers including major industrial companies, oil refineries, railways and utilities.

It said the consultation was to take 30 days, and impact up to 60 staff, with the potential income statement impact of the closure said to be approximately £1.6m with a net cash receipt expected of £1.3m for the sale of the property and assets.

The consultation period completed on Friday with the Colt fixed assets being sold to Future Industrial.

Augean said the main terms of the agreement were £1.0m cash consideration, the transfer of all staff working for Colt Industrial Services at the Hull site, the retention by the company of the Colt business working capital, and the retention by the Company of the Hull site, which was now being leased to Future Industrial on a 10-year lease for £0.1m per annum.

“The sales proceeds will be used to pay down existing debt facilities,” Augean said in its statement.

“There is now not expected to be an exceptional loss on closure [or] sale,” it explained, adding that “the loss attributable to the assets sold was £0.75m in 2017”.

As it had previously announced, Augean would continue to operate its industrial services business across the rest of the group.