More on Brambles
Brambles restructuring
Brambles is proposing to dispose of businesses that generate almost half its sales and a nearly a third of its operating profit. The businesses Brambles is retaining are Chep (pallet hire) and Recall (document archiving and management). brambles also plans to switch from a dual listing on the London and Australian stock exchanges to a single listing in Australia.
The businesses Brambles is selling are either under performing. the under-performing business, particular Cleanaway (waste disposal) are not doing well as part of Brambles and will be worth more elsewhere. The remaining business include some good performers, but these are small and worth exiting in order to improve focus.
Recent disposal of Cleanaway Germany and the purchase of a document management company is consistent with the new strategy and was a precursor to it.
We welcome the restructuring as the benefits it brings in improving focus and releasing value through disposals are clear.
The downgrading of the London listing to a secondary listing will make Brambles less interesting to British investors.
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