SIG said it was selling its contracting business 鈥� just for 拢1 initially 鈥� following disappointment with government policies that were meant to stimulate home improvements. SIG said that there had been 鈥渁 significant downturn in market volumes due to the end of the Carbon Emissions Reduction Target scheme, subsequent lack of traction from the Green Deal and continued market uncertainty surrounding the Energy Company Obligation鈥�.
Help-Link UK will pay a nominal initial cash consideration of 拢1, plus a deferred cash payment of 拢1.5m on 31 December 2016 and a further 拢6.5m in 2017 depending on the performance of Miller Pattison.
In addition, SIG is providing 拢5.3m in cash to Miller Pattison at completion.聽
Miller Pattison has 11 branches across the UK and 300 employees. For the 2013 financial year it had sales of 拢25.4m and made a loss before tax of 拢5.2m after incurring 拢2.1m of net restructuring costs and goodwill impairment. Gross assets were 拢29.3m and net assets were 拢15.6m as at 31 December 2013.聽 SIG expects to incur an associated exceptional charge in 2014 of approximately 拢13m relating to the disposal.
SIG said that it remained committed to the development of its wider energy management and services offering in all its countries of operation.
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