4th Feb 2019 11:02
LONDON (Alliance News) - Medical technology firm Scientific Digital Imaging PLC said Monday it acquired cooling and temperature control equipment maker Thermal Exchange Ltd, spending up to GBP1.1 million.
Scientific Digital bought Thermal Exchange for an initial GBP847,036. A further cash payment will be made for net assets at completion, but this is not expected to be more than GBP300,000. Scientific Digital has funded the acquisition from existing cash resources, it said.
For the financial year ended September, Thermal Exchange generated GBP210,000 pretax profit on revenue of GBP1.4 million. The Leicester-based company was founded in 1982 and has 15 staff.
By comparison, Scientific Digital itself had pretax profit of GBP1.7 million on revenue of GBP14.5 million for the year ended April 2018.
Scientific Digital expects the acquisition to be earnings enhancing from the first full year of ownership.
"Thermal Exchange represents another step in our group growth strategy and is a complementary fit providing potential areas for growth alongside a talented workforce," Scientific Digital Chair Ken Ford said. "The acquisition is in line with our previously announced strategy of organic and acquisitive growth and is expected to be earnings enhancing in its first full year of ownership."
Scientific Digital also explained it extended its senior facility with HSBC Bank PLC - part of HSBC Holdings PLC - to the full GBP5.0 million from the initial GBP3.0 million. The end date was also extended to April 2022.
At the end of 2018, Scientific Digital had net cash of GBP1.2 million.
Shares in Scientific Digital were 2.1% higher at 35.99 pence on Monday.
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