Engineering group Hill & Smith has raised £1 million by selling a subsidiary firm.
The Solihull-based company raised the cash by selling Ash & Lacy Perforators (A&L), a long-established perforated and expanded metal firm, to a newly-formed company set up by some of its directors.
Hill & Smith chief executive Derek Muir said the move was part of plans to focus on high value-added parts of the business.
He added: “We are continuing to strategically focus the group towards the higher added value infrastructure products activities and the sale of Ash & Lacy Perforators represents a further step in the completion of this strategy.”
A&L largely supplies to the building and construction industry.
The net sale consideration of approximately £1 million is payable in cash.
Hill & Smith shrugged off a seven per cent fall in revenue to £196.8 million in the six months up to June 30, to deliver a two per cent rise in underlying profit before tax, to £20.5 million.
The deal comes just days after Hill & Smith appointed a new chairman. The infrastructure-products-to-galvanising firm has appointed experienced engineering figure Bill Whiteley to take over from David Grove.