UK food company Provexis has announced the sale of its Altu food business to Go Lower Limited for a cash consideration of £75,000 (US$132,344), which will be used for working capital purposes.
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The company said that the brand has recently extended its distribution, via a new pack format, in two multiple grocers, and continues to enjoy national distribution in high street and major multiple grocers. However, following a strategic review, Provexis concluded that, in order to focus on the core activity of functional foods, a disposal of the Altu business was in the best interests of the company and shareholders.
For the year ended 31 March 2005, the Altu business was loss-making, after direct overheads on turnover of £298,000, and in the year to date has continued to be loss-making. The disposal therefore will have a cash positive effect on Provexis’ business going forward, the company said.
“Provexis will now be able to focus its resources and management time on its core business: the development of novel, patented, food bioactives with scientifically-proven health benefits. These will be commercialised via a combination of licensing and own-brand functional foods,” said Dr Stephen Franklin, CEO.
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