Elektron Technology has completed the sale of the business and assets (excluding trade debtors) of Carnation Designs, to Ring Automotive Limited for £0.23 million in 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.
At 2:56pm: (LON:EKT) Elektron PLC share price was +0.25p at 6.75p