Critchley sells its components arm

Critchley sells its components arm
Alex Mayhew-Smith Critchley Group has bailed out of its struggling electronic components division Critchley Components, selling the business for ?7.3m. Although the firm refused to give details of the buyer, industry sources say the division was acquired by a privately owned US firm called Pontiac Coil. The US company, based in Michigan, is already believed to be shipping equipment from the US to the Nottingham business. Critchley Group said it had decided to concentrate on the electrical accessories and identification markets. Its components division had an operating profit of ?2m in the year to March 1998 with sales of ?9.8m but fell in the six months to September 1998 when sales were ?3.5m and the operating profit was ?200,000. The sale will give the group an exceptional profit of ?700,000 in the year ending March 31, 1999. Pre-tax profits for the group in the second half of the financial year are not expected to match the first six months of trading. The group also announced the acquisition of DiTel, a US manufacturer of cable accessory products, for ?3.2m. Ian McCallum, Critchley’s CEO, said: “The disposal of Critchley Components Ltd strengthens the balance sheet and releases funds for acquisitions.” Towards the end of last year the company made 25 redundancies at its components division, following a downturn in orders. At the time the firm blamed the strong pound and the economic crisis in Asia for the cuts.


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