Firm comes in for Technocover

 

According to tonight’s (Tuesday) Manchester Evening News, Ensor Holdings, based in Wythenshawe, has bought a 90% stake in security products business Technocover for a nominal fee and will buy the remaining 10% for £1m after August 31, 2015, subject to profit targets being achieved.

 

Technocover, which is based on Hanfaes Lane, supplies utility companies across the UK and Europe as well as energy, communication and transport firms seeking to protect critical infrastructure assets, an area of operation which Ensor said showed resistance to recessionary pressures.

 

In its most recent accounts to August 31, 2010, Technocover had sales of £10.3m and operating profits of £290,000, before write-offs and interest charges. Since then, the business has been undergoing a restructuring which has wiped out trading profits but has resulted in an underlying profitable yet under-capitalised business, Ensor added.

 

Ensor said it would inject £1m into Technocover, funded by cash reserves and bank debt, to complete the restructuring and added that it expects the acquisition to be immediately earnings enhancing.

 

The firm's shares rocketed by nearly 24 per cent or 5.5p to 28.5p after the deal was announced, the highest since June 2008.

 

Technocover is the latest addition to Ensor's portfolio of companies, taking the total to eight. They include ones supplying tools, building products, industrial doors and furniture packaging as well as rubber processing.