Brasway sells firm for 3.4m pounds

BRASWAY, the Birmingham-based hydraulic joints maker and industrial lubricant supplier, has sold its steel tubing business to Senior Engineering for pounds 3.4m.

The sale will cut Brasway's annual turnover by about one-third, and its debt burden by about two-thirds. The gearing ratio will drop to 15 per cent when the deal goes through.

Mark Swaby, chairman, said Brasway was too small a player in a commodity-based market dominated by big players. He added that he wanted to concentrate on the hydraulics business.

Brasway Tube, of Wednesbury in the West Midlands, had a turnover of pounds 12.7m in the 12 months to 2 May 1992 and made pre-tax profits of pounds 182,000.

However, in the first nine months of the curent financial year Brasway Tube lost pounds 157,000. Mr Swaby denied that the disposal represented a fire sale to reduce debt.

Senior will add Brasway Tube to its Phoenix Steel Tube and Tube Products businesses. The fate of the 90 jobs at Brasway Tube is undecided.

Brasway's shares stuck at 16.5p yesterday. Senior stock was also unchanged, at 91p.