News Column

Oxford Advanced Surfaces Plans Operating Business Split

August 29, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Oxford Advanced Surfaces Group PLC Friday announced plans to split its operating business into a separate company in order to help it achieve commercial success.

The company posted a pretax loss of GBP546,000 in the half year to June 30, narrower from GBP932,000 in the previous year, as it saw revenue of GBP19,000, up from GBP3,000, as it slashed its cost of sales and other operating costs.

Oxford Advanced has decided, following a strategic review, to split its operating business Oxford Advanced Surfaces Ltd into a separate company. It said it believes that operating the business from within a listed group, with associated costs and regulation, is not the best means to achieve success.

It is proposing that new shares in the newly formed business be offered to potential investors including current management and investors, whilst leaving the publicly-listed company with no less than 75% of the overall shareholding in the new business. If this plan is approved, the new business will establish its own board consisting of existing directors of the publicly-listed company and investor representatives.

The publicly-listed company will not have any on-going funding commitment to the new business, and the new business will seek any required financing independently.

Oxford Advanced Surfaces said it the plan goes through it will change its board, retaining two non-executive directors. Current Chief Executive Philip Spinks and non-executive chairman Peter Rowley are expected to take up the same roles at the new businesses.

The company will change its name at the next annual general meeting to reflect its new structure, and said it will continue to consider its investment in the business as the best way to maximise shareholder value.

After suspending further investment into its VISARC technology in 2013, the company has decided that there is "very limited opportunity" for it to create value in anti-reflection products. It is continuing to assess the possibility of using the technology for other applications, and the patents and know-how related to the technology will be transferred to the Oxford Advanced Surfaces Ltd business if the restructuring goes through.

The company has continues to develop its OntoTM surface treatment technology, and said it had made good initial progress with its project with Sun Chemicals Ltd to create a radcure coating platform for the graphic signage and packing market areas.

Shares in Oxford were trading down 16.2% at 2.2 pence Friday morning.

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Source: Alliance News

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