- Australian-based company Saferoads (SRH) has agreed to a $1 million asset sell-off for one of its on-grid lighting products
- The on-grid lighting product line lacked “a strong future” for Saferoad and an asset sale agreement has subsequently been finalised
- A final sale total will be based on current book values subject to a stocktake in January, and trigger an $800,000 payment for SRH
- Saferoads has not had the most auspicious of years, as it reported a third consecutive year of declining top-line revenue and a slight decline in gross profits
- Despite this, the company reported an overall profit for the year following staff and management consolidations
- SRH shares are trading flat over midday at 33 cents each
Australian-based company Saferoads (SRH) has agreed to a $1 million asset sell-off for one of its on-grid lighting products.
The on-grid lighting product line lacked “a strong future” for Saferoad and the asset sale agreement has subsequently been finalised.
The decision comes after SRH’s address to shareholders in November, where the Chairman declared a review of the company’s product profile was underway.
Investors were informed that any products that did not fit with Saferoad’s outlook would be sold to free up capital.
Saferoads is set to receive $800,000 after a stocktake review in January for the sale, with the remaining undisclosed sale balance set to be received three months thereafter.
Saferoads has not had the most auspicious of years, reporting a third consecutive year of declining top-line revenue and a slight decline in gross profit in its 2020 annual report.
Despite this, the company reported an overall $521,000 net profit for the year, following staff and management restructures.
SRH shares are trading flat at 9:55 am AEDT at 33 cents each.