Chip maker gets rid of radio arm

TROUBLED computer chip maker Imagination Technologies has sold off its Pure digital radio business in an attempt to move on from last year’s record losses.

The company, which suffered the biggest loss in its 30-year history in June after slipping £63m into the red, has agreed to sell its radio division to Austrian company AVenture AT for £2.6m in cash.

The investment company has also been granted an option to purchase Pure’s headquarters in Hertfordshire for £4.5m. Pure, founded in 2002, racked up a loss of £7.9m in the year to April 30.

Imagination, which produces some of the technology for Apple iPhones, has struggled to adapt to falling smartphone sales and said the sale of Pure will allow it to pursue its goal of establishing its own consumer electronics brand.

Shares fell 2pc, or 5p, to 241.5p.