Partner Article

Northern Bear sheds loss-making division

BUILDING services group Northern Bear has offloaded its loss-making plumbing, heating and mechanical services subsidiary DJ McGough to its original founders, the company announced this morning.

The Chester-le-Street plc has disposed the operation to Mr D McGough and Mrs S McGough for a consideration of £1.

DJ McGough services industrial, commercial and local authority clients across the North East and in the year ended 31 March 2010, it achieved a profit before tax of £80,526 and as at 31 March 2010 had net assets of £0.9 million.

However since the year ended 31 March 2010, DJ McGough has been trading at a loss and has required funding from the Company and there can be no certainty that there will be any pick up in its business activities in the near to medium term.

“As a result, the Board believes that the Disposal is in the best interest of shareholders. The Disposal will result in an impairment charge in the Company’s current financial year, which will be treated as an exceptional charge,” the company said.

This was posted in Bdaily's Members' News section by Ruth Mitchell .