24th Dec 2007 09:35
Petards Group PLC24 December 2007 Petards Group plc ("Petards", "the Company" or "the Group") Disposal Petards, the AIM listed developer of advanced surveillance systems, announcesthat it has completed the disposal of its UK Government and Commercial softwarebusiness ("the UK Software Business") to BAE Systems Integrated SystemTechnologies Limited ("BAE") for a total cash consideration of £2.5m. The disposal forms part of the board's recently announced strategy to focus theCompany's resources on a more limited range of technologies and markets. £2.4mof the consideration is payable on completion with the balance of £0.1mconditional upon certain future events. The proceeds will be used to reduce theGroup's bank indebtedness and to invest in the remaining parts of the Group. TheGroup balance sheet will be strengthened by a profit on disposal expected to bein the region of £1m, subject to the finalisation of certain post completionbalances. Net debt as at 31 December 2007 is now forecast to be approximately£3m. The UK Software Business comprised Petards Limited's UVMSTM network videorecording and Advantage command and control software, together with the legacysoftware products 2nd Eyes, COBYT and Argus that were the forerunners to UVMSand Advantage. In the year ended 31 December 2006, the UK Software Business hadrevenues of £1.8m (Group total: £23.2m) and made a gross profit of £0.4m (Grouptotal: £8.4m). Total gross assets of the UK Software Business as at 30 June 2007were £1.6m (Group total: £8.3m). Under the terms of the deal Petards will continue to be able to exploit UVMSTMin the USA having been granted exclusive rights to develop, sell and maintainUVMSTM to the US casino gaming market as well as rights to continue to sell theproduct to other non-defence related US customers. BAE will continue to developUVMSTM and will be working in partnership with Petards to support and enhancethe product to the benefit of Petards current and prospective customers in theUSA. Petards Limited retains its Swift rapidly deployable wireless camera technologyand ProVida range of video, speed detection and ANPR products. Petards eyeTrainTM on-board CCTV and defence activities as well as its specialist cameratechnologies are also unaffected by the disposal. Petards Chairman Tim Wightman said "This is an important step in the Board'sstrategy. We are focussing our efforts where the Group has strong marketpositions and technologies while significantly reducing the Group's net debt,improving the balance sheet and providing additional working capital for itsremaining operations." For further information: Petards Group plc Collins Stewart Europe Limited Parkgreen CommunicationsAndy Wonnacott, Finance Director Mark Connelly Paul McManusTel: 01932 788 288 Tel: 020 7523 8350 Mob: 07980 541 893www.petards.com [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Petards