Elektron Technology PLC Disposal of Queensgate Nano (0684F)

TIDMEKT

RNS Number : 0684F

Elektron Technology PLC

16 February 2018

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 GBP0.8 million. In addition Elektron will be due a further cash payment of 50% of Queensgate product sales in excess of GBP0.9 million in the 12 months ending on the first anniversary of completion of the sale, subject to a maximum further payment of GBP0.8 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 GBP0.70 million and negative 'Brand Contribution' was GBP1.20 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 GBP1.46 million for the year ended 31 January 2017. The net assets of Queensgate at 31 January 2017 amounted to GBP0.6m 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:

 
                                 +44 (0) 1223 
Elektron Technology plc           371 000 
www.elektron-technology.com 
 Keith Daley (Chairman) 
 Andrew Weatherstone (CFO 
 & Company Secretary) 
N+1 Singer (Nominated Adviser    [phone] 
 & Broker)                        3000 
Shaun Dobson / Jen Boorer 
 (Corporate Finance) 
Michael Taylor (Corporate 
 Broking) 
 

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

This information is provided by RNS

The company news service from the London Stock Exchange

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February 16, 2018 02:00 ET (07:00 GMT)