Elektron completes sale of Wallace Instruments

Elektron Technology, the global technology group, has completed the sale of Wallace Instruments to C&M Projects for a total gross consideration of £0.3m. Wallace is a manufacturer of rubber testing instruments.

In the year ended 31 January 2016 the business of Wallace traded as a brand within Wallace Instruments Limited with sales of £1.2 million and 'Brand Contribution' of £0.1 million.

Brand Contribution is an internal measure of profitability before the allocation of certain Group pooled costs such as finance, information technology and human resources.

After making a deduction for a fair share of these costs the board estimates Wallace to be breakeven for the year ended 31 January 2016.

The total gross consideration represents the approximate net value of the Wallace assets being transferred. Elektron said that in the 10 months to 30 November 2016 Wallace saw revenues of approximately £1.0m (10 months to 30 November 2015: £1.0m) and its contribution was not material to the group. The cash proceeds will be used by Elektron for working capital purposes.