Checkit Regulatory News (CKT)

6 Sep 2007 07:01

Elektron PLC06 September 2007 FOR IMMEDIATE RELEASE 6 September 2007 ELEKTRON PLC ("Elektron" or the "Company") Disposals The Board of Elektron announces that on 5 September 2007 it disposed of theentire share capital of Richard Lloyd Group Limited ("RLG") and its subsidiaryRichard Lloyd Limited ("RLL") for a nominal consideration. RLG and RLL were subsidiaries of Howle Holdings Plc which was acquired by Elektron in December2006. RLG is a dormant holding company. RLL is a manufacturer of engineers cuttingtools operating under the 'Galtona' brand name. In the 16 month period to 31January 2007 RLL made an operating loss of £302,000 before fair valueadjustments. Sales in the same period were £2.3 million. Management accountsfor the 6 months to 31 July 2007 show that RLL broke even on an operating basison sales of £836,000. According to the same management accounts the net assetsof RLL were £80,000 which amount was fully provided for in the fair valueadjustments made following the acquisition of Howle. The outstanding inter-company interest-free indebtedness of £450,000 owed by RLL to Elektron (the "RLLIndebtedness") will be repaid by RLL at the rate of £5,000 per month. £260,000of the RLL Indebtedness is secured on the assets of RLL ranking after a thirdparty provider of finance. On 14 August 2007 Elektron also completed on the sale of Howle's remainingfreehold property occupied by NPE-Innotek, its former business, for a cashconsideration of £370,000. These transactions complete the disposal strategy outlined in the offer documentfor Howle in relation to its property assets and its two smallest subsidiariesand are not expected to have a material effect on the Elektron group. For further information, please contact: Chris LeighElektron PlcTel: 01708 336308 Roland CornishBeaumont Cornish Limited Tel: 020 7628 3396 ENDS This information is provided by RNS The company news service from the London Stock Exchange