GCS flags hire business sale price tag

Global Construction Services is still negotiating the sale price for its equipment hire business to Onsite Rental Group, but says the division accounted for less than 10 per cent of the group’s total revenue.

Perth-based GCS estimated that the final sale price tag would be greater than the $23 million total asset written down value, and was subject to a number of conditions.

The sale of GCS Hire was announced yesterday, with details of the sale figure undisclosed.

The company said in a statement today that the division accounted for less than 10 per cent of its total revenue, which, after taking into account its recently reported $207.7 million revenue result for the 2017 financial year, would be equal to $20.7 million.

Managing director Enzo Gullotti said post completion of the sale, GCS would be in a net cash position of about $30 million.

Shares in GCS were 3.2 per cent lower to 73.5 cents each at midday.