Sagentia cashes in on Sphere Medical IPO and hoists profits
Cambridge technology design hothouse, Sagentia plc, has sold its shares in UK medical device company Sphere Medical for £703,000.
Sagentia said that following the disposal, the board anticipated gross cash at the end of the year to exceed £20 million.
And it said profit for the full year would be slightly ahead of current expectations.
The Sphere shares disposal followed an end-of-2010 review of all Sagentia’s legacy investments.
At June 30 this year, Sagentia had just one remaining minority investment to which it attributed any value – Sphere Medical Holdings Limited – with a balance sheet carrying value of £800k.
Sphere successfully completed an initial public offering onto the AIM market in November and the Sagentia board decided to cash in. Subsequent to that listing Sagentia has disposed of its entire holding in Sphere.
A Sagentia trading update revealed that the disposal of the Sphere shareholding realised approximately £703,000 after transaction costs and the cash balance of the group will increase accordingly. “Following this disposal, the board now anticipate gross cash at the end of the year to exceed £20 million,” the update added.
The disposal of the Sphere shareholding will result in a non-cash charge of around £97,000 in the current year. But due to “a modestly stronger than anticipated performance” the board anticipates that profit for the year will be slightly ahead of current expectations.