Imagination sells loss-making Pure

“The Pure business, with its assets and liabilities, is being sold on a cash and debt free basis to AVenture AT, an Austrian company, for £2.6m in cash,” said Imagination. “The buyer has also been granted an option to acquire one of the Group’s properties in Kings Langley, Hertfordshire for £4.5m. The cash will be used to reduce the Group’s debts.”

The deal is expected to complete on 30 September 2016.

Pure’s loss before tax in the year to 30 April 2016 was £7.9m and it had gross assets of £5.2m.

“The performance of the Group’s continuing operations in the first quarter of the financial year to 30 April 2017 continues to be in line with the Board’s expectations,” said Imagination. “The sale of other non-core cash consuming activities is progressing with on-going discussions with several interested parties.”

A small part of IMG Systems was sold earlier in September for “minimal consideration”.

“With the difficulties of last year behind us, continuing operations have traded in line with expectations in the first quarter,” said Imagination CEO Andrew Heath. “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.”