Datrontech Group PLC
26 October 2000
Not for release, publication or distribution in or into the
United States, Canada, Australia or Japan
DATRONTECH GROUP PLC ('DATRONTECH')
DISPOSAL OF INTERNATIONAL COMPUTER PRODUCTS BV ('ICP')
Datrontech announces the disposal of ICP, its Netherlands subsidiary, and
ICP's subsidiary undertakings to JWP Valk Orthodontie BV. The consideration
payable is NLG1 and the purchaser will assume ICP's debt of approximately £3.2
million.
ICP is a Netherlands-based distributor of computer components and peripherals.
In the 12 months ended 2 January 2000 ICP reported a profit before taxation of
£0.4 million on turnover of £44.3 million. As at 2 January 2000, ICP had net
assets of £1.9 million. Since that time ICP's trading has deteriorated and it
has become loss making.
Under the terms of the disposal Datrontech will, inter alia, be released from
its guarantee of ICP's overdraft facility.
The disposal of ICP continues Datrontech's strategy of concentrating on the
development of its business in the provision of networking, mobile computing
and voice data convergence technologies, while maintaining a cost effective
service in the supply of PC components. The strengthening of the Company's
balance sheet remains a major priority and the sale of ICP and its associated
debt will assist in this process.
John Lowry, CEO of Datrontech, commented:
'The disposal of ICP removes ongoing liabilities from Datrontech and
strengthens its prospects for regeneration under its new management team.'
For further information please contact:
Datrontech Group Plc 01256 360360
Ray Way, Chairman
John Lowry, CEO
Buchanan Communications 020 7466 5000
Tim Anderson