Bioquell PLC Disposal (9236M)
02 August 2017 - 11:08PM
UK Regulatory
TIDMBQE
RNS Number : 9236M
Bioquell PLC
02 August 2017
2 August 2017
Bioquell PLC - Disposal of UK Airflow Service Business
Bioquell PLC ("Bioquell") (LSE symbol: BQE) - provider of
bio-decontamination products and services for the Life Sciences,
Pharmaceutical and Healthcare markets today announces the disposal
of its UK AirFlow service business ("Airflow Service").
The disposal represents a further step in transitioning
Bioquell's focus to its core bio-decontamination products and
services business. Since ceasing production of Airflow safety
cabinets in 2013, the company has continued to support these legacy
products in the UK with dedicated service engineers, spare parts
and filter manufacture.
Bioquell has been concerned to maintain its reputation for
providing excellent customer service and has agreed to transfer
this business to Crowthorne Hi Tec Services Ltd ("CHTS"). CHTS has
a track record of over 20 years in supplying safety cabinet
service, validation and troubleshooting services and has a network
of over 20 service engineers nationwide run from its headquarters
in Fleet, Hampshire.
With immediate effect, the service element of the Airflow
business will be transferred to CHTS, including the transfer of
three engineers, their testing equipment and leased vehicles. The
consideration for this part of the business is GBP169,000 payable
in cash on completion and a further GBP70,000 payable on 2 January
2018. In addition Bioquell will retain advance cash payments from
certain customers for service contracts amounting to approximately
GBP120,000. In the year ended 31 December 2016, Airflow Service had
revenue of GBP0.7m and generated gross profit of approximately
GBP0.35m. The value of net assets of Airflow Service being disposed
of is GBP0.1 million.
CHTS also has an option to acquire the related spare parts and
filter manufacturing equipment business on or about 1 January 2018
for a cash consideration of the aggregate of GBP100,000 and the
agreed value for the stock of this business, which will be
determined on completion but is unlikely to exceed a further
GBP100,000. The spare parts and filter manufacturing equipment
business had revenue of GBP0.25m and generated profits before
interest and taxation of approximately GBP0.1m in the year ended 31
December 2016.
Commenting on the strategic disposal, Ian Johnson, Executive
Chairman of Bioquell PLC, said:
"I am pleased to have been able to reach agreement to exit this
legacy business and to focus our resources on serving our core
bio-decontamination customers. CHTS are better placed to service
the high volume of Airflow service contracts which diluted our core
product operating margins. We continue to seek ways to simplify and
focus the business around the core bio-decontamination products and
services, driving higher margin sales and yielding higher quality
earnings."
Enquiries:
Ian Johnson Executive Chairman Bioquell PLC 01264 835900
Michael Roller Finance Director
***********************************************
Notes to Editors:
Bioquell is a UK-headquartered, international technology company
(www.bioquell.com) which sells specialist biological contamination
control products and services into the Life Sciences,
pharmaceutical and healthcare sectors, with most of its revenues
generated from overseas customers.
-- Bioquell's bio-decontamination technology uses hydrogen
peroxide vapour which is highly effective at eradicating
micro-organisms such as bacteria and viruses at room temperature -
and is subsequently broken down at the end of the
bio-decontamination process into water vapour and oxygen (hence an
extremely 'green' technology). Bioquell has a number of patents
associated with this technology.
-- Bioquell has also developed a number of products which
complement its core hydrogen peroxide vapour technology. The
recently introduced Bioquell Sequre, an ergonomic fixed,
wall-mounted bio-decontamination system for small rooms and pass
through chambers; the Bioquell Qube, a novel, modular aseptic
work-station; and the Bioquell POD, a fast-to-deploy single patient
room primarily for infection control in hospitals, are all the
result of the customer focused, solutions based approach to
development that has been employed.
-- Bioquell's products and services are sold by wholly-owned
Bioquell organisations in the UK, USA, France, Germany, Ireland,
Singapore, China and through a network of international
distributors.
Bioquell also develops, manufactures and sells environmental
control equipment into the defence industry, including chemical,
biological, radiological and nuclear filtration systems.
Further information for investors can be found at
www.bioquellplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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