Microvitec PlcÆs long running cash flow problems have forced it into selling its loss making display manufacturing business to appease its all powerful bankers. The Bradford, Yorkshire-based company announced on Monday that the division would be sold for ú1.4m to the groupÆs US marketing partner, Conrac Technology, resulting in a book loss on disposal of ú4.9m. Conrac has also agreed to a 5% equity investment in Microvitec, worth around ú600,000 with an option to increase this by 16%. The sale is a pre-condition of the groupÆs re negotiation of its banking facilities, without which it cannot continue to trade, said chairman James Bailey. Microvitec is also likely to sell off its touch screen division, Perex. The company blamed the strength of the pound, with the displays division making most of its sales overseas.
