Peterhead Group, which changed its name from World Fluids last year, has agreed to sell some of its assets, including cranes, a transport fleet of trailers and property, to Protaras for £12.6 million. The disposals, the group said, will reduce its capital requirements and "generate sufficient cash to alleviate some of the pressures on its working capital requirements".

Roger Taylor, a former director of the company, will have a majority stake in Protaras. Certain liabilities relating to the disposed businesses are to be discharged and the net cash received by Peterhead will be £2.6 million. These liabilities consist of £8.2 million in leases and hire purchase, and £1.8 million to repay the outstanding balance of an unsecured loan of £2.25 million made by Mr Taylor to the company last year.

Peterhead's shareholder will have to sanction the deal at an extra-ordinary general meeting. The reduction in the size of its crane fleet represents the "best opportunity to realise additional cash for the group and to reduce debt", according to Peterhead, which raised £8.85 million in a share placing last year.