Checkit Regulatory News (CKT)

23 Mar 2007 07:30

Elektron PLC23 March 2007 FOR RELEASE 7.30 a.m. 23 March 2007 ELEKTRON PLC Disposal of NPE- Innotek Limited Elektron Plc (the "Company" or "Elektron"), the AIM traded engineered componentsmanufacturer, announces that it has disposed of certain assets and the businessof NPE -Innotek Limited ("NPE") for a total consideration of £180,000. NPE NPE operated from an 11,000 square foot facility in Neath employing 15 staff.The Company manufactured a variety of press, mould, form and cutting tools forindustry. NPE reported sales and a loss before tax of £841,000 and £148,000respectively in its last audited accounts to 30 September 2005. In the sixteenmonths to 31 January 2007, NPE management accounts show a loss before tax of£218,000 on sales of £1,013,000. The assets sold comprise all of the fixed assets, stocks, goodwill, businesscontracts, business information and intellectual property rights of NPE. Thepurchaser has also assumed obligations under certain HP agreements. Excludedfrom the sale are the creditors and book debts. The net book value of fixed assets, as valued under Elektron accounting policiesat 1 November 2006, the date of acquisition of NPE by Elektron, was £155,000.Stocks are currently valued at £13,000. Consideration The total consideration payable to NPE is £180,000. £80,000 was paid in cash oncompletion and the balance of £100,000 has been satisfied by the assumption ofhire purchase liabilities. The proceeds of the disposal will be used by the Company to reduce borrowings. Reasons for the disposal The disposal continues the strategy outlined in the offer document for HowleHoldings. For further information please contact: Adrian Girling Christopher Leigh Michael CornishExecutive Chairman Finance Director Beaumont Cornish LimitedElektron Plc Elektron Plc Tel: 0207 628 3396Tel: 0208 979 3232 Tel: 01708 336308 This information is provided by RNS The company news service from the London Stock Exchange