Renew has sold its gas infrastructure specialist business, Forefront, to asphalt contractor Ferns Group.

The division was sold as part of Renew's plans to exit the gas utility infrastructure services market.

The engineering services group said: "As previously announced, the Group made the decision to exit from the loss-making low pressure, small diameter gas pipe replacement activities with the expectation that the remaining business, now focussed on medium pressure activities, would return to profitability in the financial year ending 30 September 2018.


"However, there has been no improvement in the financial performance of Forefront since the start of this financial year and consequently, the decision has been taken to dispose of Forefront in order to allow management to focus on the continuing growth opportunities within the remaining parts of the Group."

As a result of the deal, Renew said it will "show a non-cash, balance sheet write-down of assets and intangible assets of approximately £9m relating to Forefront which will be shown as an exceptional item in the Group's accounts".

In the last financial year, Forefront made a pre-tax loss of £2.8 million.

(LM/MH)