Imagination Technologies share price dips as it sells Pure radio business for £2.6m


Pure manufactures digital radios

Imagination Technologies announced today that it has sold its Pure digital radio business.

Pure was sold for £2.6m on a cash and debt free basis to Austrian firm AVenture AT GmbH. Imagination Technologies said the buyer has also been granted an option to acquire one of the group's properties in Kings Langley, Hertfordshire for £4.5m.

The chip-making company plans to use the proceeds of the sale to reduce its debts.

Imagination had announced its plans to sell Pure earlier this year, as part of a restructuring programme aimed at slashing costs by £15m.

The firm also said that the sale of "other non-core cash consuming activities is progressing with on-going discussions with several interested parties".

Shares in Imagination Technologies dipped by 2.74 per cent this morning.

"With the difficulties of last year behind us, continuing operations have traded in line with expectations in the first quarter," said Andrew Heath, the group's chief executive.

"I would like to thank the staff of Pure for their contribution to Imagination over the years and wish them, and Pure's new owners, well for the future. The sale underlines the group's focus on its core IP licensing activities."

Hertfordshire-based Imagination posted its worst ever loss just two months ago, after struggling with a slowing market. Imagination has major exposure to Apple and was hit hard when the tech giant reported a slowdown in iPhone sales.