Stock Market News
Elektron Technology completes sale of Queensgate Nano
Elektron Technology announced the completion of the sale of the wholly-owned trade and assets of Queensgate Nano on Friday, to Prior Scientific Instruments, for an initial cash consideration of £0.8m.
The AIM-traded firm said that in addition, Elektron would be due a further cash payment of 50% of Queensgate product sales in excess of £0.9m in the 12 months ending on the first anniversary of completion of the sale, subject to a maximum further payment of £0.8m.
It said the disposal was in line with its strategy to rationalise its portfolio in order to focus on Bulgin, Checkit and Elektron Eye Technology.
The disposal would be earnings-accretive, and the cash proceeds would be used by Elektron for working capital purposes.
Elektron described Queensgate as a specialist nanopositioning business.
In the year ended 31 January 2017, sales at Queensgate were £0.7m, and negative 'brand contribution' was £1.20m.
Brand contribution is an internal measure of profitability before the allocation of certain group pooled costs such as finance, information technology and human resources, the Elektron board explained.
After making a deduction for a share of those costs, the board estimated Queensgate's operating loss to be £1.46m for that year.
The net assets of Queensgate at 31 January 2017 amounted to £0.6m.
"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," said chief executive John Wilson.
The AIM-traded firm said that in addition, Elektron would be due a further cash payment of 50% of Queensgate product sales in excess of £0.9m in the 12 months ending on the first anniversary of completion of the sale, subject to a maximum further payment of £0.8m.
It said the disposal was in line with its strategy to rationalise its portfolio in order to focus on Bulgin, Checkit and Elektron Eye Technology.
The disposal would be earnings-accretive, and the cash proceeds would be used by Elektron for working capital purposes.
Elektron described Queensgate as a specialist nanopositioning business.
In the year ended 31 January 2017, sales at Queensgate were £0.7m, and negative 'brand contribution' was £1.20m.
Brand contribution is an internal measure of profitability before the allocation of certain group pooled costs such as finance, information technology and human resources, the Elektron board explained.
After making a deduction for a share of those costs, the board estimated Queensgate's operating loss to be £1.46m for that year.
The net assets of Queensgate at 31 January 2017 amounted to £0.6m.
"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," said chief executive John Wilson.
Related share prices |
---|
Elektron Technology (EKT) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price