TIDMAERO
RNS Number : 3558Y
Strat Aero PLC
21 August 2018
Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support
Services
21 August 2018
Strat Aero plc ("Strat Aero," the "Company" or the "Group")
Acquisition of controlling interest in GyroMetric Systems
Strat Aero is pleased to announce that it has reached agreement
to acquire a further 228,000 ordinary shares in GyroMetric Systems
Limited ("GyroMetric") from Braveheart Investment Group plc
("Braveheart"). The consideration of GBP273,600 will be satisfied
by the issue of 23,791,304 new shares in Strat Aero at a price of
1.15p per share ("Consideration Shares") (the "Transaction").
The Transaction increases the Company's shareholding in
GyroMetric from 36.9% to 57.8% (and from 33.8% to 53.0% fully
diluted based on the options currently exercisable).
The increased investment in GyroMetric reflects the Board's
increased confidence in the prospects for GyroMetric. There are
also potential synergies between GyroMetric and Geocurve as both
have similar development needs for AI based data monitoring,
processing, management, and storage.
The Strat Aero board also welcomes Braveheart, which will retain
a 19.9% interest in GyroMetric, as a significant new 7.2%
shareholder in Strat Aero.
GyroMetric's existing controlling shareholder, Braveheart, owned
40.8% of GyroMetric prior to the Transaction. Trevor Brown,
Executive Director of Strat Aero, is Chief Executive of Braveheart
and currently owns 29.8% of Braveheart's issued share capital with
Braveheart being considered an associate of his and therefore a
Related Party of Strat Aero under the AIM Rules for Companies.
Accordingly, the Transaction constitutes a related party
transaction in accordance with Rule 13 of the AIM Rules for
Companies.
The independent Directors in this instance being Nigel Burton
and Paul Ryan, consider, having consulted with the Company's
nominated adviser, SP Angel, that the terms of the Transaction are
fair and reasonable insofar as the Company's shareholders are
concerned.
Completion of the Transaction is subject to GyroMetric
shareholder approval, which the Company expects to receive by the
end of August, at which stage the Company will issue the
Consideration Shares and apply for these to be admitted to trading
on AIM. Further announcements will be made in due course.
As previously stated, the Directors believe that the Company
retains sufficient cash resources to fund the Company's operations
beyond the end of this calendar year. This position subsequent to
the Transaction remains unchanged.
Strat Aero's operating subsidiary, Geocurve, continues to be
busy. Though the summer months are traditionally slow months for
the construction and surveying industries, Geocurve has not
experienced any slow down. The Company will report fully on
business prospects when Interim figures are released in
September.
Nigel Burton, Strat Aero Director said: "The acquisition of this
controlling interest in GyroMetric marks a further step in our
previously announced strategy of investing in world leading
technological services that are relevant to existing operational
business within Strat Aero, i.e. with the potential through data
and analysis to revolutionise monitoring and inspection services in
high value and mission critical environments. Strat Aero, which has
been represented on the GyroMetric board since our initial
investment in April, looks forward to continuing to work with the
GyroMetric management team to support the future development and
success of GyroMetric."
Alan Lamb Chairman of GyroMetric, said: "We are pleased to
welcome Strat Aero's increased shareholding in GyroMetric. Their
investment demonstrates a recognition of what GyroMetric has
achieved and the exciting prospects for further application of the
company's monitoring, control and safeguarding systems."
About GyroMetric
GyroMetric Systems Ltd develops and manufactures digital
monitoring and safeguarding equipment for rotating shafts, with
proprietary intellectual property including algorithms, software
and relevant patent protection. The company's technology is proven,
operating reliably in harsh environments over many years. These
systems set a new standard of measurement and protection that can
be used on any rotating shaft from a bench tool spindle to a cruise
liner propeller shaft.
In addition to the company's established Incremental Motion
Encoder (IME) system, GyroMetric has recently filed a patent
application for a new method of measuring the axial movement of
rotating shafts which matches the reliability achieved by its
digital radial measurement method.
The GyroMetric active protection system has been certified for
the marine market by IACS (International Association of
Classification Societies) and ABS (American Bureau of Shipping).
Working with global marine coupling supplier Vulkan Gmbh,
GyroMetric has over 60 systems in service which protect large
marine drives and couplings, producing considerable cost savings
for their ship owners.
More recently GyroMetric has moved into monitoring and
protecting wind turbines, having recently completed highly
successful trials using the world's newest and most powerful
offshore wind turbine drive train test facility at the Offshore
Renewable Energy (ORE) Catapult at Blyth. Working with ORE
Catapult's drivetrain experts, GyroMetric's technology has been
tested to improve the understanding of the behaviour of the
components in use, with a view to increasing the efficiency and
output of wind turbines, whilst reducing the requirement for
unplanned maintenance.
Further applications in other industrial sectors are being
considered as the company works to strengthen its sales and
marketing resources.
Much of industry depends on rotating shafts and the health, or
otherwise, of these systems is critical. Important sectors for the
GyroMetric business to date have been in marine engines, machine
tools and wind turbines and it has great potential in sectors such
as nuclear and other power stations and within petrochemical
plants. Monitoring the condition of rotating shaft mechanisms has
traditionally been carried out using vibration sensors. Such
sensors measure the frequencies and amplitudes of vibration. The
GyroMetric approach is to measure accurately the actual
displacements and the frequencies which, coupled with real time
monitoring, enables automatic intervention to safeguard equipment
and gives much richer data for assessing performance including wear
and load calculations, and to facilitate optimal maintenance and
replacement planning.
The GyroMetric system is able to measure the runout (positioning
error) of bearings to one tenth of a micron (0.0001 mm) at speeds
of up to 20,000 revolutions per minute. The unique ability of the
GyroMetric system to do this reliably over a wide range of speeds
and shaft sizes makes the system applicable to most industrial
applications.
The system uses standard sensor and electronics technology so
installation and operating costs are comparable with current
technologies, but with significantly enhanced accuracy and
diagnostic capabilities which are vital for condition monitoring of
capital equipment. GyroMetric data can be used to optimise
performance by continually maximising output and planning
maintenance to minimise down time. Material operating cost
reductions have been achieved using GyroMetric data, providing a
substantial competitive advantage for owners.
During the year to 31 December 2017, GyroMetric recorded an
unaudited loss of GBP30,634.
Further details can be found on the GyroMetric website
https://GyroMetric.systems
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information please visit www.strat-aero.com or
contact:
Strat Aero plc
Trevor Brown (Executive Director) +41 7941 55384
Nigel Burton (Non-Executive Chairman) +44 7785 234447
SP Angel Corporate Finance LLP +44 20 3470 0470
Stuart Gledhill
Jeff Keating
Caroline Rowe
Peterhouse Corporate Finance +44 20 7469 0930
Lucy Williams
Fungai Ndoro
Notes
Strat Aero plc is focused on the continued development of the
Company's 'Survey & Inspection' business, in addition to
implementing an enhanced growth strategy via the appraisal of
complementary acquisition or investment opportunities, and in
February 2018 acquired a 37% stake in GyroMetric Systems, which
specialises in next generation digital shaft monitoring. This is in
line with the Company's stated objective to achieve improved
financial performance in the near term.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQLLFVTTRIIFIT
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