Mikoh sells security label printing unit
- 10 May, 2011 09:10
Asset security company, Mikoh (ASX:MIK), has sold its security label printing unit at a capital loss.
The company has sold all of the assets and liabilities of its Subscribe business, formerly owned and operated by Mikoh subsidiary Mikoh Imaging Systems.
The divestment will create a net capital loss of $3.7 million, but Mikoh said it had entered a profit sharing arrangement on a contract that when settled should result in a “close to break-even position for Mikoh on the sale.”
Mikoh said the deal will reduce monthly cash-burn and free up time and financial resources to devote to the growth of the company's Smart&Secure RFID tag business, as well as new technologies in development.
The company also provides products including biometrics authentication, and asset monitoring and reporting solutions.
Mikoh narrowed its December half loss by 20 per cent year-on-year to just under $1.9 million, while growing revenue 169 per cent to nearly $2 million.
At the time, managing director Richard Sealy said Smart&Secure was starting to make money for the company, which he believed was “now on course to a recovery.”
MIK shares fell 3.7 per cent in Monday's trading to $0.026.