1 February 2017 – acquisition
The group has acquired the minority holding of 49.999% in its subsidiary MCL for cash consideration of £5.1m in line with the arrangements stated at the time of its acquisition in July 2014. This was noted in our original recommendation of the shares back in August last year. MCL, which is a stand alone business within the group, provides specialist communications and surveillance technology to defence and security markets in the UK and overseas. The acquisition is expected to be earnings enhancing. As the shares have run up from 330p when they were recommended we now believe they are fully valued and advise readers to take profits. SELL.