Imagination Technologies Group PLC Sale of Pure and Q1 trading update (1383L)

TIDMIMG

RNS Number : 1383L

Imagination Technologies Group PLC

29 September 2016

29 September 2016

Imagination Technologies Group plc

Sale of Pure and Q1 trading update

Imagination Technologies Group plc (LSE: IMG, "Imagination", "the Group"), a leading multimedia, processor and communications technology company, announces the sale of its Pure digital radio business and a trading update for the first quarter of Imagination's financial year.

The Pure business, with its assets and liabilities, is being sold on a cash and debt free basis to AVenture AT GmbH, an Austrian company, for GBP2.6 million in cash. The buyer has also been granted an option to acquire one of the Group's properties in Kings Langley, Hertfordshire for GBP4.5 million. The cash will be used to reduce the Group's debts.

In the year to 30 April 2016, Pure's loss before tax was GBP7.9m and it had gross assets of GBP5.2m. The deal is expected to complete on 30 September 2016.

The performance of the Group's continuing operations in the first quarter of the financial year to 30 April 2017 continues to be in line with the Board's expectations.

The sale of other non-core cash consuming activities is progressing with on-going discussions with several interested parties. A small part of IMG Systems was sold earlier in September for minimal consideration.

Andrew Heath, Chief Executive, said:

"With the difficulties of last year behind us, continuing operations have traded in line with expectations in the first quarter.

"I would like to thank the staff of Pure for their contribution to Imagination over the years and wish them, and Pure's new owners, well for the future. The sale underlines the Group's focus on its core IP licensing activities."

 
 ENQUIRIES: 
 
 Imagination Technologies             Tel: [phone] 
  Group plc 
 Andrew Heath, Chief Executive 
  Officer 
 Guy Millward, Chief Financial 
  Officer 
 
 Instinctif Partners                  Tel: [phone] 
 Adrian Duffield/Kay Larsen/Chantal 
  Woolcock 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 29, 2016 02:00 ET (06:00 GMT)