Matrix sells Malaga property

Matrix Composites & Engineering has sold its engineering workshop in Malaga for $3.25 million, with the proceeds to be used to further reduce the company's debt.

In a statement today, the Perth-based company said the majority of services performed at the Malaga property were consolidated at its complex in Henderson during the 2014 financial year, in response to the falling demand for engineering and fabrication services.

Matrix shut the workshop down earlier this financial year.

As a result of the sale, Matrix will record a non-cash impairment of $600,000 in its full-year financial accounts.

The proceeds of the sale will mostly be used to reduce the company’s term debt.

“The sale of this surplus asset provides Matrix with additional funds to further strengthen the company’s balance sheet,” chief executive Aaron Begley said.

“Our ability to consistently pay down debt over the past few years means Matrix is now close to a net cash position, ensuring we are well positioned to respond to the low oil price environment.”

Matrix shares closed 5.8 per cent higher to 36 cents each.