LONDON (Alliance News) - Electronics supplier Acal PLC Thursday said it will sell its remaining supply chain businesses for GBP6.0 million, completing the disposal of a unit that was profitable but capital intensive and leaving it focused on the industrial and medical sectors.
In a statement, the company said it has agreed to sell its UK-based IT spares and support services business to a company in which the management team of that business is participating. The business being sold posted revenue of GBP6.1 million and pretax profit of GBP1.2 million in the year to end-March, 2013.
The company had previously sold it UK parts business in January 2013 and its European parts business in November 2013.
It said it will be paid GBP5.7 million initially, and a deferred payment of GBP0.3 million payable by the end of 2014. It expects to make a profit on disposal of GBP2.4 million excluding goodwill and a loss on disposal of GBP3.3 million including goodwill.
"Sale proceeds from the disposal will be retained for working capital purposes, for future investment within the group or as consideration for future acquisitions by the group," it said.
It said that following the sale, it now expects to put out its results for the financial year to March 31, 2014 on June 5.
"There has been no change in trading performance or financial position since the company's trading update on 10 April 2014," it said. At that time, it had said it would meet expectations for its last financial year as it saw sales and order growth in its electronics business, and its three acquisitions performed well.
Acal shares were down 1% at 366.25 pence Thursady.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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