UK engineering firm Laird Group is pulling out of the market for domestic windows, doors and security products to focus its attention on electronics and technology.
Laird said it has sold its security systems division to Lupus Capital, an Aim-listed mini-conglomerate, for £242.5m.
Laird will hand back £100m of the sale proceeds to shareholders through a special dividend.
The security systems division makes products such as conservatories, PVC doors and seals. After the divestment, Laird will be left with its technology division, whose product range includes wireless antennas and shielding protection for high-tech devices such as mobile phones and laptops.
Peter Hill, chief executive, explained today that the sale of the security systems business was "the end of the beginning" for Laird, which has been bolstering its high-tech operations for several years.
"Revenue growth for the technology division grew fourfold between 2003 and 2006, and profits grew fivefold," said Mr Hill. "The security systems division has been very helpful in supporting this growth, and the time is now right for a separation."
Laird's full-year results for 2006, which were also announced this morning, show that its technology arm now generates more than half its revenues, and is significantly more profitable.
Underlying profits were up 33% at £73m, with £49m generated by Laird Technologies from revenues of £370m and £26.8m generated by Laird Security Systems from revenues of £237m. Overall pre-tax profits for the company were £66m.
Shares in Laird were up 9% at 504p in early trading in London.
Mr Hill predicted that Laird would continue to profit from the growth in mobile phone and computer sales and the drive towards ever-more complex electronics devices. Increased demand for wireless antennas should also help Laird, argued Mr Hill who cited the growing take-up of satellite digital ratios by the automotive sector as an example of the growing popularity of wireless technologies.
Laird has bought five high-tech companies in 2006, and a further three so far in 2007. Mr Hill hinted that further acquisitions are likely.