BBA plastics businesses sold for pounds 25m

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The Independent Online
THE ENGINEERING group BBA has begun its asset disposal programme with the sale of pounds 25m worth of plastics businesses to United Industries, writes Robert Cole.

Last year BBA said it wanted to sell businesses with annual turnover of pounds 200m. The companies disposed of yesterday had combined sales of pounds 32m in 1993 and made operating profits of pounds 2.9m.

Tom Brown, formerly in charge at the engineer Fenner, moved in as chief executive of United last year. The deal is funded by a placing of shares to expand United's capital base fivefold. Its market capitalisation will rise from pounds 6m to pounds 35m.

United also released results. A loss before tax of pounds 3.6m in the year to last April was reduced to pounds 1.5m for the nine months to 31 December. Loss per share was cut from 8.4p to 3.8p. There is no dividend.

BBA shares rose 2p to 216p. United's are suspended at 17.5p but trading will resume on 31 March. Placing price of the shares is 15p.