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2 Jan 2007 15:35
Densitron Technologies plc
Sale of Densitron Ferrograph Limited
Densitron Technologies plc ("Densitron") is pleased to announce that it has exchanged contracts for the sale of its public information displays division, Densitron Ferrograph Limited ("Ferrograph") to Trueform Engineering Limited ("Trueform") effective as at 31st December 2006. Net operating assets are being purchased on a pound for pound basis, subject to completion accounts, plus a payment of ‚£459,533 for goodwill. It is expected that total consideration will be approximately ‚£1,000,000 payable in cash of which ‚£ 150,000 will be paid on the first and second anniversary and the balance paid on completion.
In its last audited accounts for the year ended 31st December 2005 Densitron Ferrograph Limited reported sales of ‚£2,986,166 and a Loss After Taxation of ‚£ 298,206. The Net Liabilities of Ferrograph were ‚£3,887,808.
Proceeds from the sale of Ferrograph will be used to reduce group debt.
Rob Smith, Densitron's CEO, commented, "The sale of Ferrograph to Trueform allows Densitron to concentrate on our remaining operating businesses and to reduce our borrowings. We are pleased that we have found a buyer for the business that is committed to the development of Ferrograph and who will take on the existing staff and premises."
Change of Directorship
Densitron Technologies plc announces that Rob Smith, Chief Executive Officer, has resigned from the Company with effect from the 31st December 2006 to follow other business interests. The Board would like to thank him for all his contribution and efforts over the years and wishes him well in the future.
Enquiries:
Ralph Baber, Chairman, Densitron Technologies plc 0207 648 4200
John Wakefield, Director, Corporate Synergy Plc 0117 933 0020
DENSITRON TECHNOLOGIES PLC
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