Elektron Technology PLC Disposal of Queensgate Nano (0684F)
February 16 2018 - 2:00AM
UK Regulatory
TIDMEKT
RNS Number : 0684F
Elektron Technology PLC
16 February 2018
Elektron Technology PLC
Disposal of Queensgate Nano
Elektron Technology plc (AIM:EKT, "Elektron" or the "Group") is
pleased to announce completion of the sale of the wholly owned
trade and assets of Queensgate Nano (Queensgate), to Prior
Scientific Instruments Limited for an initial cash consideration of
approximately GBP0.8 million. In addition Elektron will be due a
further cash payment of 50% of Queensgate product sales in excess
of GBP0.9 million in the 12 months ending on the first anniversary
of completion of the sale, subject to a maximum further payment of
GBP0.8 million.
The disposal is in line with the Group's strategy to rationalise
its portfolio in order to focus on Bulgin, Checkit and Elektron Eye
Technology. The disposal will be earnings accretive and the cash
proceeds will be used by Elektron for working capital purposes.
Queensgate is a specialist nanopositioning business. In the year
ended 31 January 2017 sales of Queensgate were GBP0.70 million and
negative 'Brand Contribution' was GBP1.20 million. Brand
Contribution is an internal measure of profitability before the
allocation of certain Group pooled costs such as finance,
information technology and human resources. After making a
deduction for a share of these costs the Board estimates
Queensgate's operating loss to be GBP1.46 million for the year
ended 31 January 2017. The net assets of Queensgate at 31 January
2017 amounted to GBP0.6m million.
John Wilson, Chief Executive Officer, commented:
"The disposal of Queensgate represents the final step in our
strategy of simplifying our operations and will enable management
to focus solely on those businesses which the Board believes offer
potential for sales and margin growth, namely Bulgin, Checkit and
Elektron Eye Technology."
Enquiries:
+44 (0) 1223
Elektron Technology plc 371 000
www.elektron-technology.com
Keith Daley (Chairman)
Andrew Weatherstone (CFO
& Company Secretary)
N+1 Singer (Nominated Adviser +44 (0) 20 7496
& Broker) 3000
Shaun Dobson / Jen Boorer
(Corporate Finance)
Michael Taylor (Corporate
Broking)
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Notes to Editors
Elektron conceives designs and markets innovative products and
services for businesses that connect, monitor and control. We have
a multi skilled team of engineers, software and product line
specialists based in Cambridge focused on the opportunities created
by global trends in the following areas:
- Demand for ubiquitous power and data: Bulgin
- Real-time operations management using Internet of Things (IoT)
technology: Checkit
- Screening for the effects of ageing on sight: Elektron Eye
Technology
This information is provided by RNS
The company news service from the London Stock Exchange
END
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