1st Sep 2014 08:45
LONDON (Alliance News) - Castleton Technology PLC said Monday that it has agreed to sell the trade and some assets of its Maxima Information Group Ltd subsidiary to PDMS UK Ltd for a total of GBP752,000.
Castleton said the sale completes its restructuring as it shifts towards providing IT managed services to the public and not for profit sectors.
GBP300,000 is payable immediately, with a further GBP300,000 due by September 30, and the final GBP152,000 due by March 31, subject to certain customer contracts continuing, said the company.
Castleton will keep some assets and liabilities associated with the subsidiary, including GBP130,000 of recoverable debtors, some legacy assets, and leasehold property.
The company said it has already collected GBP200,000 of annual maintenance revenues in the current year, so it will see an exit enterprise valuation for the business approaching GBP1 million.
In the year to end-March the subsidiary generated a pretax profit of GBP305,000 on GBP1.5 million of revenue.
"The disposal represents the end of the restructuring of the Company and we can now focus fully on our strategy of building a leading provider of IT managed services to the public and not for profit sectors," said Chief Executive Ian Smith in a statement.
Shares in Castleton were trading up 1.3% at 1.37 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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