Imagination Tech confirms Pure radio business up for sale

Imagination Technologies has begun restructuring plans in an effort to reduce operating costs, and the company has confirmed the Pure radio business is up for sale. The group says it expects to post a loss for this financial year, ending April 2016 - and clearly the Pure division is seen as part of the problem.

A statement released today by Imagination Technologies, said: "The Group believes there are potentially more appropriate owners for Pure, given the economies of scale in the consumer electronics market, who will be able to leverage its leading technologies and brand. Imagination will treat the Pure division as a discontinued operation with immediate effect.

"Imagination will also initiate a full operational review, including all R&D expenditure. This review, which is expected to last several months, will ensure investment is focused on core activities which are set to deliver attractive returns."

Paul Smith, Pure’s general manager, told What Hi-Fi?: "I can confirm that Pure is up for sale but from our customers’ point of view, it’s absolutely business as usual."

Chief executive Sir Hossein Yassaie has stepped down with immediate effect, having been at the company since 1992 and overseen the company's move into new product categories with the launch of Pure digital radios and the Jongo multi-room audio range. The group now plans to reduce operating costs by £15 million over its next financial year.

The company blamed wider market conditions and the "slow-down in the overall semiconductor sector", as well as the uncertainly around trading prospects in China. Imagination says it does however have sufficient cash resources to meet its obligations going forward.

Imagination plans to focus its investment on "core activities which are set to deliver attractive returns". And this doesn't look likely to include Pure.

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Joe Cox
Content Director

Joe is Content Director for T3 and What Hi-Fi?, having previously been the Global Editor-in-Chief of What Hi-Fi?. He has worked on What Hi-Fi? across the print magazine and website for more than 15 years, writing news, reviews and features on everything from turntables to TVs, headphones to hi-fi separates. He has covered product launch events across the world, from Apple to Technics, Sony and Samsung; reported from CES, the Bristol Show, and Munich High End for many years; and written for sites such as the BBC, Stuff, and the Guardian. In his spare time, he enjoys expanding his vinyl collection and cycling (not at the same time).