Business
Disposal of Queensgate Nano
Disposal of Queensgate Nano.
About this update from Checkit Plc
[{"type":"text","content":"\n \nRNS Number : 0684F Elektron Technology PLC 16 February 2018 \n\n \nElektron Technology PLC\n \n \nDisposal of Queensgate Nano\n \n \nElektron 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 £0.8 million. In addition Elektron will be due a further cash payment of 50% of Queensgate product sales in excess of £0.9 million in the 12 months ending on the first anniversary of completion of the sale, subject to a maximum further payment of £0.8 million.\n \nThe 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.\n \nQueensgate is a specialist nanopositioning business. In the year ended 31 January 2017 sales of Queensgate were £0.70 million and negative 'Brand Contribution' was £1.20 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 £1.46 million for the year ended 31 January 2017. The net assets of Queen...