APC Technology Group PLC Sale of Water Hygiene & Treatment Division (4042M)
October 13 2016 - 02:00AM
UK Regulatory
TIDMAPC
RNS Number : 4042M
APC Technology Group PLC
13 October 2016
13 October 2016
APC TECHNOLOGY GROUP PLC
("APC", the "Company" or the "Group")
Sale of Water Hygiene & Treatment Division
The Board of APC (the "Board") is pleased to announce that it
has agreed the sale of its water hygiene and treatment division to
Integrated Water Services Ltd ("IWS"), a subsidiary of South
Staffordshire Plc. The division has been sold for a total
consideration of GBP1.8m: GBP0.8m in cash consideration payable to
APC, and GBP1m in respect of the settlement of amounts outstanding
under the invoice finance facility provided by ABN Commercial
Finance. In addition the transaction has allowed APC to dispose of
GBP0.65m of future liabilities under operating leases, halve the
Company's headcount and significantly reduce fixed costs.
This disposal follows a review by the Board to focus efforts on
the growth of its high reliability electronic components, Smartwave
Internet of Things ("IoT") products, and energy efficient lighting
distribution businesses.
The Board believes that these businesses align much more
closely, both operationally and in terms of future strategy, and
that they provide a sustainable base for the future development of
the Group.
Each one of these businesses have established products that
exist in markets with significant growth opportunities and this
disposal, along with other recent restructuring and financing
initiatives, will help the Group to take full advantage of
them.
The proceeds of the disposal will be used to strengthen the
balance sheet and support working capital.
The business sold relates to the shares of Green Compliance
Water Division Ltd which deals with water hygiene and treatment. In
the 17 months to 31 August 2015 the business being sold had audited
revenues of GBP11.3m, made a loss before tax of GBP2.1m and had net
assets at 31 August 2015 of GBP0.4m.
Richard Hodgson, Chief Executive of APC, commented:
"'We are very pleased to have reached agreement with IWS in
relation to the disposal of our water hygiene and treatment
division and believe that they offer a great home for the water
staff and customers to thrive as part of a much larger business
within the water industry.
With the restructuring of APC during the past 12 months, the
fund raisings that we completed in February and August and now this
disposal, APC is entering our fiscal year 2017 as a very focused
operator in the high reliability electronic components, Smartwave
Internet of Things products, and energy efficient lighting
distribution businesses. This deal has also allowed us to
significantly reduce our fixed costs.
We are committed to building an outstanding technical sales,
marketing and distribution company for the incredible technologies
that we represent in these growth markets now and in the
future.
We look forward to the coming year as one where we can
consolidate and grow our operations in these sectors."
Enquiries
+44 (0) 330 313
APC Technology Group PLC 3220
Richard Hodgson, Chief Executive www.apc-plc.co.uk
Art Russell, Chief Financial
Officer
BDO LLP (Financial Adviser +44 (0) 121 352
to APC) 6200
Satvir Bungar
Stockdale Securities Limited +44 (0)20 7601
(Nominated Adviser and Broker) 6100
Mark Brown / Antonio Bossi
/ Edward Thomas
Redleaf Communications (Financial +44 (0)20 7382
PR) 4730
Rebecca Sanders-Hewett / David
Ison / Susie Hudson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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