TIDMAERO
RNS Number : 2988K
Strat Aero PLC
09 April 2018
Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support
Services
09 April 2018
Strat Aero plc ("Strat Aero," the "Company" or the "Group")
Investment in Gyrometric Systems
Strat Aero plc (AIM:AERO) is pleased to announce that it has
signed a definitive Share Subscription Agreement for the
acquisition of 37% of the enlarged share capital of Gyrometric
Systems Limited ("Gyrometric") for a cash consideration of GBP0.25m
(the "Subscription").
Gyrometric has developed a unique system for reliably
collecting, analysing and monitoring digital data from rotating
shafts over a wide range of speeds and shaft sizes. Gyrometric's
systems have operated successfully in service for several years in
challenging environments with very high levels of reliability.
Current applications include monitoring of marine propulsion
systems, machine tools and wind turbines. The technology uses
proprietary software and Artificial Intelligence techniques to
analyse performance and to diagnose and predict drive system
maintenance needs, reporting to commercial operators through a
cloud-based Internet of Things platform.
After this investment the Directors believe that given the
combination of significantly reduced corporate costs and the
outlook for the Geocurve surveying and inspection business, the
Company retains sufficient cash resources to fund the company's
operations beyond the end of this calendar year.
About Gyrometric
Gyrometric was founded in 2007 as a University spin-out company
to commercialise a new digital measurement system for rotating
shafts. Since then significant development has resulted in systems
with proprietary intellectual property including software, relevant
patent protection, and proven hardware certified for use in harsh
industrial environments. These systems set a new standard of
protection that can be used on any rotating shaft from a bench tool
spindle to a cruise liner propeller shaft.
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, 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.
Gyrometric has developed proprietary software and electronics.
For the marine market this equipment has been certified by IACS
(International Association of Classification Societies) and
American Bureau of Shipping. It has market penetration in large
marine drives, having sold 60 marine monitoring systems which are
already producing considerable cost savings for their ship
owners.
During 2017 Gyrometric entered the rapidly expanding market for
wind turbines. A major test programme is currently underway at the
UK's national wind turbine research centre the ORE Catapult in
Blyth, where Gyrometric equipment is installed on a 7 MW turbine.
The wind turbine installation is designed to monitor the entire
drive system, including the main rotor bearing, the gearbox and its
bearings, the coupling and the generator input bearing. This array
covers all of the major mechanical failure points. When installed
across all turbines in a wind farm, the system is capable of
monitoring drive train loads to maximise energy take-up without
damage.
Unaudited management accounts for Gyrometric indicate an EBITDA
loss of GBP31,000 for the year to 31 December 2017.
Related Party Transaction
Gyrometric's controlling shareholder, Braveheart Investment
Group plc ("Braveheart"), owned 65% in Gyrometric prior to the
Subscription. Trevor Brown, Executive Director of Strat Aero, is
Chief Executive of Braveheart and currently owns 29.82% of
Braveheart's issued share capital with Braveheart being considered
an associate of his under the AIM Rules for Companies. Accordingly,
Gyrometric is considered a related party of Strat Aero and the
Subscription therefore constitutes a related party transaction in
accordance with Rule 13 of the AIM Rules for Companies.
The Directors independent of the Subscription, being Nigel
Burton and Paul Ryan, consider, having consulted with the Company's
nominated adviser, SP Angel, that the terms of the Subscription are
fair and reasonable insofar as the Company's shareholders are
concerned.
Further details can be found on the Gyrometric website
https://gyrometric.systems/
Nigel Burton, Strat Aero Director said: "The acquisition of this
initial interest in Gyrometric marks the commencement of 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 will be
closely involved in the future development of Gyrometric and to
this end Nigel Burton will join the Gyrometric board with immediate
effect.
Alan Lamb Chairman of Gyrometric, said: "We are pleased to
welcome Strat Aero as a shareholder in Gyrometric. Their investment
will enable the company to strengthen the management, technical and
sales teams. Our targets for 2018 include additional sales in the
marine control and monitoring market, roll out of our remote
monitoring service and expansion of our presence in the wind
turbine market."
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
Nigel Burton (Non-Executive Director) +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. 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 company news service from the London Stock Exchange
END
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