Merton LBC is believed to have netted £190m of ‘much-needed' capital after selling a wholly-owned subsidiary.

CHAS, a provider of risk prevention, compliance and supply chain management services across the public and private sector, has been sold to US firm Veriforce though it will continue to have a Merton base.

Council chief executive Hannah Doody said: ‘CHAS has been a fantastic example of a well-run, commercially successful local authority trading company.'

Merton leader Ross Garrod added: ‘We are incredibly proud to have built CHAS into the success it is today and this deal will not only secure its ongoing growth into the future but will also provide much-needed capital for the council to invest into local improvements.'