Alphyra to sell divisions to Healy for €12m

Alphyra, formerly known as ITG, has agreed to sell its computers and telecoms businesses to its group managing director, Mr Maurice Healy, for €12 million (£9.45 million). The Dublin-based technology firm also published results yesterday which show it lost €100,000 before interest, tax depreciation and amortisation in the six months to October 31st 2001.

The disposal, which is conditional on gaining shareholder approval, involves payment of €8 million cash and the issue of €4 million in loan notes. The deal includes Alphyra's software training centre and a consumer electronics distribution business as well as its bigger computers and telecoms divisions.

Under the terms of the deal, the disposal businesses will transfer to Calyx Limited and Calyx Computers Limited, of which Mr Healy is a director and 100 per cent shareholder. Mr Healy, a co-founder of ITG, has indicated he will resign as group managing director of Alphyra immediately if the disposal becomes unconditional.

Ms Niamh Brodie, an analyst with Merrion Stockbrokers, said the disposal was positive and at a fair price given the market conditions. "Strategically it will enable them to focus on their electronics transaction business," she added.

Alphyra said it reported a loss primarily due to heavy investment in its electronics transaction businesses in France and Germany. This division provides a range of services via terminals including electronic top-up facilities for mobile users.

Loss before tax, goodwill and exceptional items was €4.2 million, with Alphyra's core electronic transaction group posting a loss of €4.3 million, up from a loss of €500,000 for the same period in 2000. The voice and data business, which Mr Healy is proposing to buy, made a profit of €100,000. However, this division performed poorly due to the downturn in the IT and telecoms market, according to an Alphyra statement. Turnover fell 35 per cent to €22 million for the six months to October 31st 2001, compared to €34.1 million in same period last year.

Alphyra shares closed down 2.5 pence in London at 285 pence. In Dublin the share was unchanged at €4.50.