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DUROC: SIGNIFICANT CAPITAL RELEASE FROM THE POLYMER OPERATIONS IN THE UNITED KINGDOM
Duroc has today received payment of the surplus from the Chapelthorpe Pension Fund, which was linked to IFG's UK unit IFG Drake Limited ("IFG Drake"). The amount received totals approximately SEK 44 million after tax. The surplus has previously been communicated and recognised in the Group's other comprehensive income and as a financial receivable.
In April 2026, Duroc AB announced that Beaulieu International Group had informed the company of its decision not to exercise the call option relating to the acquisition of the shares in IFG Drake. Against this background, Duroc subsequently evaluated a wind-down of the polymer operations in the United Kingdom. As of 30 June, IFG Drake's operations will have been discontinued.
Today, IFG Drake's cash position amounts to approximately SEK 50 million. In addition, there is further net working capital of approximately SEK 18 million, which is expected to further strengthen the company's liquid funds in the near term. In addition to working capital, IFG Drake owns properties in Golcar, United Kingdom, which are currently recognised at approximately SEK 7 million. The estimated market value is in the range of SEK 15-30 million. A sales process has been initiated, but the duration of this process is currently difficult to assess.
The total capital release from IFG's UK operations and pension fund is therefore estimated to amount to approximately SEK 110 million, excluding future proceeds from the divestment of the operations' properties. As a result of the wind-down, the Group's earnings will be impacted by items affecting comparability of approximately SEK 30 million, of which approximately SEK 10 million is non-cash. A future divestment of the properties is expected to result in an accounting gain.
The sale of IFG Asota, together with other measures within the European fibre operations, will thereby have released approximately SEK 300 million in capital to the Group. The European fibre operations have weighed on Duroc's profitability in recent years.
By allocating released resources to the core operations within Industry and Trade, Duroc is creating conditions for profitable growth and long-term value creation for Duroc's shareholders. Duroc continues to see good opportunities for both organic growth and acquisitions of additional business units in the coming years.
Within the Non-Strategic business area, Phormium, Plastibert and Drake Extrusion currently remain. Together, these units generate sales of approximately SEK 1,000 million, have equity of SEK 450 million and have shown weak profitability in recent years. The work to complete the Group's rebalancing is ongoing. The ambition is for the process to be completed in the short to medium term.
Stockholm 29 June 2026
This disclosure contains information that DUROC is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on June 29, 2026 at 17:10 CET.