OMG completes sale of House of Moves subsidiary

Technology group OMG has sold its House of Moves (HOM) subsidiary, a service-based motion capture business, for £0.8m.The company will receive £0.3m as an initial payment, with the remainder to be received in installments over a four-year periods.The move came after OMG decided that HOM no longer fitted with its overall strategic direction.Chief executive Nick Bolton said: "This move is a step in the right direction as the board continues to explore a range of opportunities to realise value in OMG's IP, which may involve the licensing of certain technologies where external companies see value in deploying our IP to pursue their own business goals or, as in the case of House of Moves, the sale of certain assets, where we believe that greater shareholder value can be realised in the near term."For the year ended 30 September 2013, HOM contributed revenues of £2.0m and a loss before tax of £0.7m.The transaction will generate a non-cash loss of approximately £0.7m, which will be included in the financial results for the year ended 30 September 2014."It is anticipated that this move will help to reduce the volatility of future profits reported by the group and the cash received from the sale will be deployed to augment the group's working capital," OMG added. The share price declined 1.85% to 26.50p by 11:48.