Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Dewhurst to acquire remaining 25pc of P&R Liftcars

(Sharecast News) - Lift, transport and keypad components specialist Dewhurst Group announced its intention to acquire the remaining 25% stake in P&R Liftcars on Wednesday. The AIM-traded company said P&R, based in Australia, specialises in the design, manufacture and installation of lift car interiors and door frame cladding.

In 2017, Dewhurst acquired 75% of P&R Liftcars from Roy Peat and Peter Hosey for AUD 1.54m (£0.8m), plus additional considerations.

Following the initial acquisition, Dewhurst said P&R Liftcars had proven to be a valuable asset, delivering significant returns to shareholders.

Despite challenges posed by the pandemic, P&R Liftcars reported a profit after tax of AUD 0.16m for the year ended 30 September 2023.

However, net assets decreased to AUD 5.7m, due to reduced capital projects during the pandemic.

A clause in the original shareholders' deed granted the seller, Roy Peat, a put option, allowing him to sell his remaining interest in P&R Liftcars to Dewhurst at a predetermined multiple of P&R Liftcars' EBIT.

The terms of that put option were amended in March 2020, adjusting the multiple to 2.5x the average of P&R Liftcars' best three financial years' EBIT.

As Roy Peat was a director of P&R Liftcars, a subsidiary of Dewhurst, the amended put option constituted a related party transaction.

The recent exercise of the option triggered Dewhurst's acquisition of the remaining 25% stake in P&R Liftcars for AUD 2.9m in cash.

Dewhurst said Roy Peat would continue to serve in a full-time capacity at P&R Liftcars until at least September, to ensure a smooth transition.

The board said the transaction was expected to be immediately earnings enhancing for Dewhurst shareholders.

At 1102 GMT, shares in Dewhurst Group were up 4.89% at 944p.

Reporting by Josh White for

Share this article

Related Sharecast Articles

Frontier IP appoints new finance chief
(Sharecast News) - Intellectual property commercialisation specialist Frontier IP announced the appointment of Jo Stent as its new chief financial officer on Friday, effective from 22 April.
Directa Plus asphalt technology laid at Imola Circuit
(Sharecast News) - Graphene nanoplatelet specialist Directa Plus announced on Friday that 'GiPave', an asphalt solution incorporating graphene and recycled plastics, was being installed at the Imola Circuit ahead of the Emilia-Romagna Grand Prix in May.
Huddled Group buys Food Circle for £0.3m
(Sharecast News) - E-commerce investor Huddled Group announced the acquisition of online retailer Food Circle Supermarket on Friday, for total consideration of up to £0.3m.
Bens Creek shares fall as it moves mine into care and maintenance
(Sharecast News) - Shares in North American metallurgical coal miner Bens Creek were sliding on Friday afternoon, after the company issued an update on its operations and working capital position, confirming that its West Virginia mine was moving into care and maintenance.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.