LAMONT Holdings, the Belfast based textiles company, will lose around £10.7 million sterling from the sale of the net assets of Shaw Carpets, according to the disposal document circulated to shareholders. However, the group notes that the net loss associated with the disposal and the sale of the warehouse will be in line with the closure costs of £8 million estimated in the interim statement. Provision for the loss will be made in the 1996 accounts.

There will be a further write off. Goodwill of £3.5 million, which was written off against reserves on the acquisition of Shaw, will be charged against the profit and loss account. This will not affect shareholders' funds.

The sale to Broomco, partly owned by some of the Shaw Carpets managers, for £1 million with a possible extra payment of £800,000, will have to be approved by the Lamont shareholders. The proceeds are being used to reduce borrowings. The net cash inflow from the disposal and the sale of the warehouse would, Lamont said, exceed the £4.5 million estimated under the closure option in the interim statement.

The document shows the substantial losses incurred by Shaw, a Yorkshire based carpet manufacturer: the operating loss rose from £2.8 million in 1993 to £3.6 million in 1994, falling back to £2.4 million in 1995. The loss amounted to £1.8 million in the first half of 1996.

Under the disposal agreement, the three directors of Broomco - Mr Dalton, Mr Dumigan and Mr Shackleton - are to be paid bonuses of £134,000 for achievement of certain key objectives in the period since the interim statement.

Also, Lamont Textiles has agreed to supply yarn to the purchasers of Shaw at the same rates, and on the same terms as currently offered to Shaw for a 12 month period. The purchasers have agreed to provide Northern Ireland Carpets, a division of Lamont Textiles, with certain handling, distribution and other services.

Part of the changes at Lamont also involve a restructuring of its Moygashel linen subsidiary in Northern Ireland. The proposed additional weaving capacity in Estonia, and elsewhere, is no longer considered necessary, according to a review of the subsidiary's future needs. A restructuring of these activities, and the Moygashel US operations, will result in a full provision against these assets. The provision is estimated at £1 million with a cash outflow of some £150,000.

Lamont's operating profits fell from £2.1 million to £1.1 million in the first half of 1996 due to mounting problems at Shaw and at Moygashel. Trading conditions in the second half have been similar to those in the first half.