LONDON (Alliance News) - Pinnacle Technology Group PLC on Tuesday said it agreed to sell RMS Managed IT Security Ltd to Intronovo Ltd for a token GBP1.
RMS, which Pinnacle acquired in October 2011, was loss-making in the year ended September 30. RMS made a loss before interest, tax, depreciation and amortisation of GBP149,000 that financial year, on revenue of GBP1.2 million. RMS had net liabilities of GBP2.2 million at the end of that period, according to Pinnacle.
The sale of the RMS business comes as part of a review designed to focus Pinnacle as a provider of 'IT as a Service' targeting provision of higher margin services in order to maximise earnings.
"As part of our review of the business, it became apparent early on that RMS would not be core to our strategy going forward. We have, however, been keen to ensure an outcome which is to the benefit of all stakeholders in that business and we believe this sale achieves this," Executive Chairman Gavin Lyons said in a statement.
Shares in Pinnacle were down 0.4% at 7.22 pence Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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