RNS Number:8236H
Eleco PLC
1 August 2001

1 August 2001

                                  ELECO PLC


                Sale of the Rail and Marine Equipment Business

                         of Abtus Limited for #0.77m


Eleco plc ("Eleco") announces the sale of the business and net operating
assets of Abtus Limited ("Abtus"), its railtrack measurement systems and
marine lighting and communication equipment subsidiary, to Evengrove Limited
("Evengrove") for #770,000. Eleco will continue to market and service the
Zeta-Tech range of railway systems application software.


Evengrove is a newly formed company that has been established to execute the
buy-out. Included among the buy-out team is Russell Owen, the current Managing
Director of Abtus.


John Ketteley, Executive Chairman of Eleco, commented:


"The transaction is another step towards the strategic refocusing of the
activities of the Eleco Group on building systems and related applications
software design and service. The sale of the Abtus business to the Evengrove
team will strengthen our balance sheet and enable us to concentrate on our
core competencies and improve the quality of Eleco's earnings."


The entire business, assets and liabilities of Abtus are being sold, with the
exception of bank balances and certain leasehold improvements, which are being
transferred to Webster Properties Limited. This Group subsidiary currently
holds the freehold of the property at Haverhill occupied by Abtus. Evengrove
is being granted a 5-year lease at an initial annual rental of #27,000
increasing to #45,000 from December 2001.


The purchase consideration of #770,000 is being settled by the payment of #
740,000 in cash on completion and the issue of #30,000 loan stock by the
purchaser, repayable in instalments by 31 December 2002. The #740,000 received
on completion, together with #41,000 of net bank balances retained, will be
applied initially in reducing net bank borrowings of the Group.


Abtus' net assets being transferred to Evengrove were #772,000 as shown by
unaudited management accounts of Abtus at 30 April 2001, the effective date of
the transfer under the business Sale Agreement. Abtus' net assets being
transferred, were #772,000. For the 10 months period ended 30 April 2001,
Abtus' operating profit was #3,000 on sales of #1,043,000. For the year ended
30 June 2000, the last date to which audited accounts were made up, Abtus
reported an operating profit of #134,000 on sales of #2,180,000, representing
8% of Group sales.




Enquiries to:

John Ketteley, Executive Chairman                   Tel: 01920 443 830
David Dannhauser, Finance Director
Eleco plc

David Millham/Tarquin Edwards                       Tel: 020 7256 5756
Millham Communications
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