Time To Act agrees PS1 million sale of surplus coating compound
Time To Act PLC on Monday said it has agreed the disposal of £1 million in surplus coating compound.
The Stockton-On-Tees, England-based company focused on engineering technology for energy transition supply chain said the heads of terms were signed for the sale of stock with a balance sheet value of zero.
Proceeds from the sale will be allocated to paying off the group’s remaining balance on its HSBC coronavirus business interruption loan scheme, or CBILS, loan, as well as for general working capital purposes and ensuring operational capacity at Diffusion Alloys.
The deal is expected to complete ‘in the coming weeks’.
‘Large project activity at our key customers is slow globally and yet we can again demonstrate our resilience by part-realising a ’hidden asset‘ on our balance sheet,’ said Executive Chair Chris Heminway.
‘Referencing an average gross profit margin target of 40% in our basic coating activity, we’d need coating revenue of £2.5 million to generate the £1.0 million of gross profit that we will book on this transaction. Our financial position is secured without any shareholder dilution. We are again demonstrating that shareholder value creation is about more than simply booking revenues.’
Shares in Time To Act were last traded at 11.00 pence on the Aquis Stock Exchange.
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