Cool or Cosy writes off $1.1 million in goodwill

O'Connor-based insulation manufacturer Cool or Cosy Ltd has written $1.1 million off its goodwill value, following the relocation of its Grants Airconditioning facility to the workship of fellow subsidiary Natural Fibre Pty Ltd.

The full text of a company announcement is pasted below

The Directors of Cool or Cosy (ASX code: COS) today announced that, following a restructure of the business operations in Queensland which resulted in the relocation of the Grants Airconditioning subsidiary, it is taking a $1.1m write-off, saying the goodwill value on its last financial report is no longer supported by the current performance of the Grants business and is unable to separately justify the carrying value of the amount which has now been reduced to zero.

This write down will impact the result for the year ended 30 June 2007.