Spice sells gas business

LEEDS-based utility services company Spice today revealed that it had sold the entire issued share capital of its loss making gas business.

In a statement, Spice said the deal eliminated a business which had made significant operating losses and "absorbed a very significant amount of management time and resources".

The company said it represented a "clean exit" through the sale of the share capital of the gas business for "nil consideration" with no completion adjustments.

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The gas business, which maintains and repairs gas boilers and heating systems, has been acquired by Booth Securities.

In April, Spice took its "first major step" to recovery by selling its telecoms business for 32.8m.

The deal, hailed by an analyst as "very good news", was at the top end of analysts' 20m to 30m range.

The Leeds-based company, whose work ranges from pinpointing unbilled properties to installing water meters, sold Team Telecom Group to a management team backed by private equity firm Gresham.

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Commenting on the sale of the gas business, Martin Towers, the chief executive of Spice, said today: "During the past two years, the gas business has been a material distraction for the group and a drain on resources. Today's announcement draws a line under these issues.

"This disposal is a significant milestone and follows quickly on the heels of the sale of the telecoms business. Spice is now able to move forward with a higher degree of focus on its core utilities and energy markets which have strong underlying regulatory and environmental drivers.

"We have made significant strides forward in recent months and the board is confident that further progress is being made to restore shareholder value."

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