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LONDON - Vulcan Industries plc (AQSE: VULC), a holding company with interests in energy storage projects, announced the sale of its subsidiary, Aftech Limited, a specialist in sheet metal fabrication. The disposal comes as Aftech faced challenging trading conditions in the latter half of the fiscal year ending March 31, 2025. The board decided to sell the business for £1 to prevent further cash outflows after reviewing the capital needed to make Aftech profitable again.
Aftech had net assets valued at £282,000 in the interim accounts as of September 30, 2023. Vulcan will report a loss on the disposal. The goodwill impairment related to Aftech, amounting to £718,000, will affect Vulcan’s unpublished results for the year ended March 31, 2024, which will now show net liabilities.
The company is currently negotiating with its secured creditors, with principal obligations due in April and June 2025. The outcome of these discussions is pending, and until they are concluded, Vulcan cannot publish its results for the year ended March 31, 2024, or the interim accounts for the six months to September 30, 2024.
Vulcan’s remaining asset is its investment in the Lincoln Battery Energy Storage project, which is in the process of obtaining planning permission. Executive Chairman Ian Tordoff commented on the disposal of Aftech, stating that the additional capital and working capital investment required to regain profitability could not be justified due to the ongoing uncertainty with the secured creditors.
The company’s announcement is based on a press release statement and reflects the current status of Vulcan Industries as it navigates through its financial restructuring. The disposal of Aftech is a strategic move to mitigate losses and focus on the company’s remaining assets.
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