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16 Feb 2018 07:00
Elektron Technology PLC
Disposal of Queensgate Nano
Elektron Technology plc (AIM:EKT, "Elektron" or the "Group") is pleased to announce completion of the sale of the wholly owned trade and assets of Queensgate Nano (Queensgate), to Prior Scientific Instruments Limited for an initial cash consideration of approximately £0.8 million. In addition Elektron will be due a further cash payment of 50% of Queensgate product sales in excess of £0.9 million in the 12 months ending on the first anniversary of completion of the sale, subject to a maximum further payment of £0.8 million.
The disposal is in line with the Group's strategy to rationalise its portfolio in order to focus on Bulgin, Checkit and Elektron Eye Technology. The disposal will be earnings accretive and the cash proceeds will be used by Elektron for working capital purposes.
Queensgate is a specialist nanopositioning business. In the year ended 31 January 2017 sales of Queensgate were £0.70 million and negative 'Brand Contribution' was £1.20 million. Brand Contribution is an internal measure of profitability before the allocation of certain Group pooled costs such as finance, information technology and human resources. After making a deduction for a share of these costs the Board estimates Queensgate's operating loss to be £1.46 million for the year ended 31 January 2017. The net assets of Queensgate at 31 January 2017 amounted to £0.6m million.
John Wilson, Chief Executive Officer, commented:
"The disposal of Queensgate represents the final step in our strategy of simplifying our operations and will enable management to focus solely on those businesses which the Board believes offer potential for sales and margin growth, namely Bulgin, Checkit and Elektron Eye Technology."
Enquiries:
Elektron Technology plc |
| +44 (0) 1223 371 000 |
www.elektron-technology.com Keith Daley (Chairman) Andrew Weatherstone (CFO & Company Secretary)
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N+1 Singer (Nominated Adviser & Broker) |
| +44 (0) 20 7496 3000 |
Shaun Dobson / Jen Boorer (Corporate Finance) |
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Michael Taylor (Corporate Broking) |
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The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Notes to Editors
Elektron conceives designs and markets innovative products and services for businesses that connect, monitor and control. We have a multi skilled team of engineers, software and product line specialists based in Cambridge focused on the opportunities created by global trends in the following areas:
- Demand for ubiquitous power and data: Bulgin
- Real-time operations management using Internet of Things (IoT) technology: Checkit
- Screening for the effects of ageing on sight: Elektron Eye Technology
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