Kodak Alaris revealed, in its latest annual report, the company is still seeking a buyer for its Paper, Photochemicals and Film (PPF) business after a potential buyer dropped out. Kodak Alaris, the spinoff from Eastman Kodak Co., has been seeking a buyer for some of its businesses to shore up its underperforming results. Additionally, the report stated company management is considering the sale of the entire company if a suitable offer is made.
Owned by the KPP2, a U.K. pension fund, performed a strategic review in the first half of 2018 and determined Kodak Alaris was “was unlikely to meet the long-term liabilities of the pension fund,” while adding this is not a reflection of the viability of the businesses.
“This action is not a reflection of the financial strength, viability or future potential of Kodak Alaris but reflects the long-term challenges for KPP2,” says Marc Jourlait, CEO.
Jourlait notes the PPF business, listed as a discontinued operation on the company’s balance sheet, was set for a sale early this year but the deal fell through on the last day. Kodak Alaris is still planning to sell the unit by March 31, 2020.
The associated assets and related liabilities were classified as held for sale, with the PPF business reported as a discontinued operation at 31 March 2018. As at the date of signing the financial statements, the preferred bidder withdrew their approach however management remains committed to the plan to sell and, in line with the instruction received from the shareholder, a sale is expected to conclude during the financial year to 31 March 2020.
The Kodak Alaris group generated revenues of $656m in the year to March 31, 2019, and $697m of revenue for the unaudited 12 months to 31 March 2018 (2018: $836m). “The declines, on a year-on-year basis, related primarily to weaker foreign exchange rates in LATAM and EMEA with small declines in each of the core businesses – all of which performed better than their respective markets with both PPF and Alaris improving market share through the year,” the company said. “Overall, the Group reported a loss after tax of $40m for the year. This loss reduced significantly compared to the previous 12 months and represents a strong result given the $12m of one-off expenditure relating to legal costs and the ongoing strategic review of our portfolio.”