Hargreaves Services nets £21m from sale of Brockwell

Industrial and property sector services provider Hargreaves Services announced the completion of the sale of the entire share capital of Brockwell to Lantern Bidco, a newly incorporated company backed by international investors experienced in UK energy infrastructure, on Monday.

The AIM-traded firm said that, as it indicated in its announcement on 8 October, the initial gross proceeds - which had been paid in cash at completion - were £21m.

A further £2m in cash could become payable, depending on the successful financial close of a future development project.

The net assets of Brockwell at completion were £10m.

After deduction of transaction fees and other non-recoverable costs, the board estimated that Hargreaves would record a profit on disposal of Brockwell of around £4m, excluding the contingent consideration.

The board said it intended to use the cash received to reduce bank borrowings.

Hargreaves retained certain freehold land assets on which Brockwell intended to develop renewable energy assets in the future, and as a result, the group would continue to have a landlord-tenant relationship with Brockwell on arm's length terms.

“The board is pleased to have completed the sale of Brockwell and wishes the new owners every success in the future development of Brockwell's renewable energy asset portfolio,” said Hargreaves chairman Roger McDowell.