City Technology detects windfall
Tuesday 30 April 1996
John Finbow, 50, and Bryan Hobbs, 55, co-founded City Technology in 1977. It has since grown into a leading designer and maker of gas sensors such as those used by miners to detect dangerous gases.
When the company comes to the stock market with a valuation of around pounds 80m, their combined stakes will be worth pounds 12m. They will be selling pounds 3m worth of shares though will retain a sizeable stake.
Mr Finbow has a 14 per cent stake in the company while Mr Hobbs has 7 per cent. Though the stake would be worth almost pounds 20m, some of this will go to reduce the company's debts.
City Technology was originally set up at the university to work on a mine safety project for the National Coal Board. In 1993, Mr Finbow led a pounds 24.5m management buy-out of the company backed by venture capital group 3i. City University sold its entire holding so will not benefit from the flotation.
The listing will take place via a placing with institutions and is being sponsored by Cazenove, the stockbroker.
The City Technology gas sensors are used in safety monitoring such as those used by miners and other tunnel and sewer workers to detect gases.
They are also used to monitor emissions from chimneys for the purpose of fuel conservation and to help ensure compliance with government regulations. The company's current rangecan detect gases including Oxygen, toxic and flammable gases.
Sales have grown from pounds 5m in June 1990 to pounds 14m last year. Operating profits have grown from pounds 1.3m to pounds 5.8m in the same period.
As sensors have a finite life, replacement sales account for around a third of turnover.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits record low as popularity suffers in wake of Ukip sex scandal
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Germany sees 'visible rise' in support for far-right extremism in response to perceived 'Islamisation' of the West
iJobs Money & Business
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...