Business
Disposal
Disposal.
About this update from Petards Group Plc
[{"type":"text","content":"\n Petards Group PLC\n24 December 2007\n\n\n\n Petards Group plc ('Petards', 'the Company' or 'the Group')\n\n\n Disposal\n\n\nPetards, the AIM listed developer of advanced surveillance systems, announces\nthat it has completed the disposal of its UK Government and Commercial software\nbusiness ('the UK Software Business') to BAE Systems Integrated System\nTechnologies Limited ('BAE') for a total cash consideration of £2.5m.\n\n\nThe disposal forms part of the board's recently announced strategy to focus the\nCompany's resources on a more limited range of technologies and markets. £2.4m\nof the consideration is payable on completion with the balance of £0.1m\nconditional upon certain future events. The proceeds will be used to reduce the\nGroup's bank indebtedness and to invest in the remaining parts of the Group. The\nGroup balance sheet will be strengthened by a profit on disposal expected to be\nin the region of £1m, subject to the finalisation of certain post completion\nbalances. Net debt as at 31 December 2007 is now forecast to be approximately\n£3m.\n\n\nThe UK Software Business comprised Petards Limited's UVMSTM network video\nrecording and Advantage command and control software, together with the legacy\nsoftware products 2nd Eyes, COBYT and Argus that were the forerunners to UVMS\nand Advantage. In the year ended 31 December 2006, the UK Software Business had\nrevenues of £1.8m (Group total: £23.2m) and made a gross profit of £0.4m (Group\ntotal: £8.4m). Total gross assets of the UK Software Business as at 30 June 2007\nwere £1.6m (Group total: £8.3m).\n\n\nUnder the terms of the deal Petards will continue to be able to exploit UVMSTM\nin the USA having been granted exclusive rights to develop, sell and maintain\nUVMSTM to the US casino gaming market as well as rights to continue to sell the\nproduct to other non-defence related US customers. BAE will continue to develop\nUVMSTM and will be working in partnership with Petards to support and enhance\nthe product to the benefit of Petards current and prospective customers in the\nUSA.\n\nPetards Limited retains its Swift rapidly deployable wireless camera technology\nand ProVida range of video, speed detection and ANPR products. Petards eyeTrain\nTM on-board CCTV and defence activities as well as its specialist camera\ntechnologies are also unaffected by the ...