Disposal of assets

RNS Number : 7387R

Checkit PLC

01 July 2020

 

Checkit plc

("Checkit" or the "Group")

Disposal of assets of Elektron Eye Technology Limited

Checkit plc (AIM:CKT) is pleased to announce completion of the sale of certain assets of Elektron Eye Technology Limited ("EET") to Topcon Europe Medical BV,  a Topcon Corporation subsidiary and EET's largest customer for a cash consideration of approximately £0.8 million payable in 24 equal monthly instalments (the "Disposal"). The assets sold relate to the Henson 9000 and Henson 7000 instruments. The proceeds from the Disposal will be used for working capital purposes of the Group. The Disposal will now allow the Group to solely focus on the development of its Checkit business. During the year to 31 January 2020, the Henson 7000 and Henson 9000 generated revenues of approximately £1.6m and had a carrying value of nil as at 31 January 2020.

The Group will seek to dispose of the remaining product line, the MPSII. Any residual assets and liabilities of EET will then be crystallised but any proceeds are unlikely to be material to the Group after deduction of costs.

EET will be treated as a discontinued activity in the accounts for the year ended 31 January 2020. Its revenues for that year were £1.9m and it broke even at an operating profit level before exceptional items. EET's intangible and other assets associated with the Disposal were fully impaired to nil book value in the Group's balance sheet as at 31 January 2020.

Keith Daley, Executive Chair, commented:

"As foreshadowed in our recent preliminary results, the disposal of EET assets completes Checkit's transformation to a Group focussed on SaaS."

Checkit plc		[phone]
www.checkit.net
Keith Daley (Executive Chairman)
Andrew Weatherstone (Chief Financial Officer)
N+1 Singer (Nominated Adviser & Broker)
Shaun Dobson / George Tzimas (Corporate Finance)		[phone]
Rachel Hayes (Corporate Broking)
Yellowstone Advisory
Alex Schlich		[phone]

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014

 

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