Radstone Technology Plc, the subsystems manufacturer that bought itself out from Plessey’s Microsystems division in 1988, is preparing for a flotation in March. The Towcester-based firm is going through broker Beeson Gregory with a placing that will value it at between 15m and 20m. It is hoping to raise 7m, 4m of which will be used to redeem convertible preference shares, leaving the group with a strong balance sheet and no gearing. Some 70% of Radstone’s sales come from the defence sector, with the rest coming from benign environments. Significant defence contracts include the firing system for Patriot missiles, sonar consoles for US tactical subs, experimental navigation control and computers for Tornado aircraft. Its benign activities include subsystems for traffic monitoring equipment, and power switching systems for railways. Major customers include Lockheed Corp, General Electric Co Inc and IBM Corp. The firm is headquartered in the UK, but also has operations in the US and France. The US accounts for 37% of sales, with the UK representing 30%. Some 18% goes to the Far East, with the rest splitting equally between Scandinavia, France and the rest of the world, including South America. Radstone can also boast of its track record, with a compound turnover growth of 14% every year for the past four years. Profits before exceptionals in the year to March 31 1993 were 985,000 on turnover of 25.9m. Profit before tax was 1.87m, and the company’s forward order book is worth 21m at present. In 1991, Radstone bought Foundation Technology, which is a small surface-mount subcontractor, doing one third of its business with Radstone. It contributes 1m to the group’s turnover. Radstone plans for organic growth, with no acquistions in the offing.
