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 £0.23 million cash. Elektron has retained CD's trade debtors and creditors which should realise a further £0.1 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 £1.83 million and 'Brand Contribution' of £0.4 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 £0.1m 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 £0.75 million (seven months to 31 August 2016: £0.98 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
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