EMS Review
24 November 2003 - 11:25AM
UK Regulatory
RNS Number:3999S
Radstone Technology PLC
24 November 2003
FOR IMMEDIATE RELEASE 24 November 2003
Radstone Technology PLC
Radstone Technology PLC, the supplier of high-performance embedded computer
products for defence and aerospace applications, today announces the result of
the review of its Electronic Manufacturing Services (EMS) business.
As was set out in the Group's interim statement earlier this month, the
objective of the review was to improve the efficiency and contribution of the
business.
The Board has decided to consolidate the Group's entire EMS activity at its
facility in Milton Keynes, which has the ability to handle significantly
increased demand.
Radstone Technology will therefore seek a purchaser for its other electronic
manufacturing subsidiary based in Hawarden, North Wales.
If an acquirer has not been identified by February 2004, the plant will be
closed. The effect of closure on the Group's current year results would be a
write down of #2.9 million of goodwill and a one-off charge of approximately
#600k to cover redundancy and closure costs. The cash impact would be
approximately #250k in the current year and #150k post year end.
The Board believes that this move will strengthen this important component of
the Radstone Group with a consequential improvement in its overall earnings.
Jeff Perrin, Group Managing Director 01327-359444
Kevin Boyd, Group Finance Director Web: http://www.radstone.co.uk
Radstone Technology
Tim Thompson / Nicola Cronk
Buchanan Communications 020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
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