Ensor surges after acquisition of security product firm

published 17 January 2012

Building and packaging products supplier Ensor surged 30% this morning after announcing the acquisition of a 90% stake in security products group Technocover for a nominal amount.

Technocover registered sales of £10.3m and an operating profit of £0.29m in the year ended August 31st. Since then, the firm has been reorganised "which, although eliminating its trading profit, has resulted in an underlying profitable, but under-capitalised business," Ensor said. Ensor will inject £1m of cash in Technocover to complete the reconstruction.

The acquisition is expected to result in capitalised goodwill of £500,000 which will enhance earnings immediately "and will represent an excellent return on investment", Ensor said.