ENTREPRENEUR David Gordon will pocket a #1.1m profit on the sale of East Kilbride-based Bar-it Security Systems, after seeing his previous business collapse with unpaid debts.
Bar-it, a fast-growing company set up by Mr Gordon and business angel Malcolm Livingstone four years ago, is being bought by Sussex-based security services group Orbis for #2.5m. Mr Gordon will join the Orbis board as commercial director following the deal, which will be announced through the Stock Exchange today or tomorrow.
Bar-it supplies secure doors, window screens and radio alarms to local authorities and housing associations to protect 4000 empty or ''void'' properties throughout the UK from intruders and vandals. It had rental income of #3m in its last financial year to end-May.
Mr Gordon started Bar-it the year after his previous security business, Glasgow-based ICC, was forced to call in the receiver following what he described yesterday as a ''patent war'' with national competitors.
Bar-it was established with #150,000 of equity put up by Mr Livingstone. Mr Gordon, who runs Bar-it's operations, did not put in any of his own money to start up the business but owns 45% of the share capital.
Mr Livingstone, who looked after Bar-it's financial affairs, owns the remaining 55%.
Mr Gordon declined yesterday to put a figure on ICC's unpaid debts, or to name the competitors who were involved in the patent war.
He admitted that some trade creditors had not been paid money owed to them, but he emphasised that secured creditors, including the Inland Revenue and Customs & Excise and the company's bank, had been paid.
Referring to one of the trade creditors, Mr Gordon claimed: ''He was offered 50% of his money on the day of the receivership and he refused it because they were after the patents.''
ICC was in business for about 12 years.
Commenting on Bar-it, Mr Gordon said: ''I'm delighted we've been able to demonstrate we could build a successful business in such a short space of time, and I'm especially pleased that I've justified the faith which Malcolm Livingstone placed in me.''
Bar-it will be integrated with Multi Secure, a London-based company in the same line of business which is already owned by Orbis.
Mr Gordon said that there would be no job losses among Bar-it's 74-strong workforce and that employment would probably be created.
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