RDG sells subsidiaries

Less than a year after its takeover of construction contractor Central Systems, Resource Development Group is selling subsidiaries Ecologia Environment and Intellect Systems.

The sale, which did not require external or regulatory approval, was made directly to the management teams of the two specialist services companies.

Both RDG subsidiaries have been providers to the mining, energy and infrastructure sectors, with Ecologia the seventh ranked environmental services business in BNiQ.

Only in January, RDG had planned to combine the Ecologia and Intellect lines under its Engenium brand.

RDG also announced the resignation of chief financial officer Mark Pugsley yesterday, replaced by former Centrals chief financial officer Michael Kenyon.

It comes just three months after former managing director Jeff Brill, who led RDG through the acquisition, stepped down from that role.

He was replaced by former Centals executive director Andrew Ellison.

Mr Ellison and Richard Eden, who joined RDG last year following the acquisition, were formerly directors of Forge Group subsidiary Cimeco, although both left some years before the end of Forge.

The 2014 deal gave the five Centrals shareholders a 78 per cent stake in the new company.

Mr Ellison indicated the sales would give RDG flexibility in future.

“These mutually agreeable sales of businesses allow RDG to focus on its core business of providing construction, plant modification, maintenance and shutdown services to the market,” he said in a statement.

"This allows RDG to look to invest in other business opportunities outside the construction market.

“The new owners, who were the senior management of Ecologia and Intellect have a good understanding of their respective businesses and will endeavour to continue to carve out a niche in the market for themselves.”

RDG closed Wednesday at 2.1 cents per share.