Contractor set to recieve a share of income from loss-making Haydon business
Social housing contractor Mears has sold its mechanical and electrical engineering business Haydon for 拢1 to Haydon鈥檚 management.
Mears will still receive some income from Haydon through the repayment of loans.
In the year to 31 December 2012 Haydon reported revenue of 拢62m and a pre-tax loss of 拢1.8m. But its results for the first six months of 2013 indicated trading had worsened as it reported revenue of 拢18.7 and a pre-tax loss of 拢1.4m.
Haydon will have to repay 拢2m of interest-bearing loans from Mears within the next five years. It has also been given a 拢7m loan, which it will repay with 50% of the revenue from current contracts.
Mears said the deal would generate it a cash benefit of 拢5m within the next 12-months.
David Miles, chief executive of Mears Group, said the Haydon business was 鈥渘on-core鈥� for Mears and its sale would allow the group to focus on its core businesses.
He added: 鈥淗aydon played a significant role in the growth and maturity of Mears over the last 14 years. I would like to thank the Haydon management team and wish them future success.鈥�
Mears also gave a trading update to the city which said orders for the year had topped 拢300m.
It said it remained on target to tender 拢1.7bn of work in 2013 and so far had been winning one in three bids by value.
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