Exit from China manufacturing

RNS Number : 0645S

Elektron Technology PLC

04 November 2013

 



4 November 2013

Elektron Technology plc

Exit from China manufacturing and Sifam businesses

Elektron Technology plc (AIM: EKT, "Elektron" or the "Group"), the global technology group, has in two separate transactions completed the sales of its manufacturing subsidiary, Elektron Components (Shenzhen) Limited and the two Sifam branded product lines (Meters and Control Knobs) for a total cash consideration of approximately GBP0.3 million. This sum represents a small discount on the net book value of the package of assets sold. The annual sales of these product lines have been running at slightly less than £2 million per annum and  made only a marginal contribution to Group operating profits.

The disposals are part of the Group's rationalisation of its portfolio, focusing its investment in its core brands and key segments of Connectivity and IMC (Instrumentation, Monitoring and Control). Elektron is continuing to transform its business, building an innovation-led technology company through its strategy of innovation, streamlining operations, investing in infrastructure, people and capabilities, as well as focusing resources on key brands and product offerings.

Keith Daley, Chairman of Elektron commented:

"The disposal of our China manufacturing and Sifam businesses further simplifies the Group. China remains important to us as a destination for our products and we shall continue to invest in our Shanghai sales office."

Enquiries:

Elektron Technology www.elektron-technology.com           [phone]

Keith Daley - Chairman

John Wilson - Chief Executive Officer

finnCap                                                                         [phone]

Ed Frisby/ Ben Thompson - Corporate Finance

Simon Starr/Victoria Bates - Corporate Broking

College Hill                                                                    [phone]

Adrian Duffield/Rozi Morris

 

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