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2 Dec 2016 07:00
2 December 2016
Elektron Technology plc
(AIM: EKT, "Elektron", the "Company" or the "Group")
Sale of Wallace Instruments ("Wallace")
Elektron Technology plc, the global technology group, has completed the sale of the business and assets (excluding trade debtors and creditors) of Wallace to C & M Projects Limited for a total gross consideration of £0.3million cash payable on completion. Wallace is a manufacturer of rubber testing instruments.
In the year ended 31 January 2016 the business of Wallace traded as a brand within Wallace Instruments Limited with sales of £1.2 million and 'Brand Contribution' of £0.1 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 fair share of these costs the Board estimates Wallace to be breakeven for the year ended 31 January 2016. The total gross consideration represents the approximate net value of the Wallace assets being transferred.
In the 10 months to 30 November 2016 Wallace saw revenues of approximately £1.0million (10 months to 30 November 2015: £1.0 million) and its contribution was not material to the Group.
The cash proceeds will be used by Elektron for working capital purposes.
As previously announced, the sale is part of the Group's rationalisation of its portfolio, focusing its investment on the core segments of Connectivity, IMC (Instrumentation, Monitoring and Control) portfolio and Checkit. Elektron is continuing to transform its business, building a technology led company through its strategy of innovation, streamlining operations and investing in infrastructure, people and capabilities.
For further information:
Elektron Technology Plc - www.elektron-technology.com
+44 (0)1223 371 000
Keith Daley-Chairman
Andy Weatherstone - Chief Financial Officer
finnCap (Nominated Adviser and Broker) +44 (0)20 7220 0500
Ed Frisby/Scott Mathieson (Corporate Finance)
Malar Velaigam (Corporate Broking)
Note to Editors:
Elektron conceives designs and markets innovative engineered 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
New waves of "aware" business applications: Checkit
The effect of ageing on sight: Elektron Eye Technology
Growth in high precision manufacture: Queensgate
Instrumentation for test and measurement: Sheen
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