Pattonair sale enables investment – Umeco
The recent sale of the Pattonair subsidiary will allow Umeco to exploit "attractive long term growth prospects", it said today (2 August 2011).
According to the Leamington Spa business, the sale has reduced its investment in working capital which, along with a new working credit facility available in £15m and $25m tranches, will enable "focused investment in support of our growth strategy".
The company will focus this investment on its composites business.
Umeco also said its first quarter to 30 June 2011 had been "satisfactory", with a 12.7 per cent year-on-year rise in revenue.
"We expect the revenue of the group's continuing operations for the six months to 30 September 2011 to reflect the growth rates experienced in the first quarter," it said.
"Margins, and therefore profit, in the six months to 30 September 2011 will however reflect the expansion of our lower margin distribution business and the investment being made to expand our manufacturing capacity."
