Elektron Technology PLC Disposal of Carnation Designs (3896L)
September 30 2016 - 8:43AM
UK Regulatory
TIDMEKT
RNS Number : 3896L
Elektron Technology PLC
30 September 2016
30 September 2016
Elektron Technology plc
(AIM: EKT, "Elektron", the "Company" or the "Group")
Sale of Carnation Designs
Elektron Technology plc, the global technology group, has
completed the sale of the business and assets (excluding trade
debtors) of Carnation Designs ("CD"), to Ring Automotive Limited
for a total gross consideration of approximately GBP0.23 million
cash. Elektron has retained CD's trade debtors and creditors which
should realise a further GBP0.1 million in net cash once settled.
CD is a manufacturer of electrical management solutions for the
specialised emergency and commercial vehicles markets.
In the year ended 31 January 2016 the business of CD traded as a
brand within Elektron Technology Limited ("ETUK") with sales of
GBP1.83 million and 'Brand Contribution' of GBP0.4 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 CD's
operating profit to be GBP0.1m for the year ended 31 January 2016.
The total gross consideration represents the approximate net value
of the CD assets being transferred.
In the seven months to 31 August 2016 CD saw a fall in revenues
to approximately GBP0.75 million (seven months to 31 August 2016:
GBP0.98 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)
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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