Ensor cancels sale of tools business

Building materials supplier Ensor dropped on Wednesday after it cancelled the planned sale of its CMS Tools subsidiary.

It had planned to sell the business to a management buyout team, but said the sale was no longer proceeding and the business would remain part of the group.

It gave no further details on why the deal was not going ahead.

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Ensor announced the sale when it reported full year results in June.

Then it said CMS Tools, which supplies tools to the roofing industry, had particularly suffered during the economic downturn and had been slow to emerge from recession.

The anticipated disposal of CMS resulted in it being treated as a discontinued activity in the annual results, which led to the Ensor taking a £842,000 charge due to losses made on the sale.

Ensor's shares were trading down 5.5% at 1035 on Wednesday, following the announcement.