Warings denies it is up for sale despite PWC document

Portsmouth contractor Warings and Bristol firm Midas have denied claims that they are up for sale even though a document, ostensibly from Pricewaterhouse Coopers, has circulated across the industry listing the assets of the companies.

The document, which has been seen by Building, is written on the headed paper of the accountant and gives an in-depth analysis of both the companies.

Warings chairman Andrew Gay is investigating with PWC where the document has come from but categorically denied that the company was for sale.

He said: “PWC is not acting for us, nor are we for sale. An approach was made in 2004 for a potential acquisition but after an exchange of discussion no deal was reached.”

Midas Group owner Steve Hindley also denied that his company was up for sale and said that he would be contacting PWC.

It is understood that Warings was approached by PWC and invited to talk to a foreign investor last October over a potential acquisition and that the management of the two parties met and exchanged information. However, after two weeks of talks the companies did not come to a deal.

It is also understood that since the PWC document has been circulated Warings has been contacted by other firms asking if it is for sale.

Warings is owned by its management team and venture capitalist the Gresham Trust, which backed the management buyout. It is understood that a financial deal will take place over the company within the next 18 months, either with the management taking full control of the business, the venture capitalist selling the whole business or the two parties remaining together and making acquisitions.

Last year Warings make a profit of £7.9m; it has an order book of more than £200m.

The post-tax profit of the Midas Group was £3.5m for the year ending 31 December. Its is one of the fastest growing companies in the sector with turnover expected to reach £200m within two years.

PWC said it does not comment on client matters. However a source close to the firm said the document being circulated was being misrepresented by the construction industry. The source said: “PWC is not actively trying to sell Warings or Midas – I think this document is some broker notes that are being misinterpreted.”