AIQ Limited Result of Strategic Review (8619B)
June 15 2021 - 1:00AM
UK Regulatory
TIDMAIQ
RNS Number : 8619B
AIQ Limited
15 June 2021
15 June 2021
AIQ Limited
("AIQ" or the "Company" or, together with Alchemist Codes, the
"Group")
Result of Strategic Review
The Board of AIQ Limited (LSE: AIQ) announces that it has
concluded its strategic review and implemented the actions noted
below.
The focus of the Board in its review has been on preserving cash
within the business whilst income levels remain depressed. This has
resulted in decisions to cut costs, dispose of non-core activities
and prioritise new sources of revenue.
Summary of actions
-- Divestment of certain e-commerce software and technology
developed in-house by Alchemist Codes to Wepin Sdn Bhd ("Wepin")
for RM200,000 (approximately GBP35,000), which completed on 28 May
2021.
-- Eight in-house developers from Alchemist Codes, along with
six members of the sales team and administrative staff, are now
employed by Wepin.
-- Charles Yong, CEO of Alchemist Codes, now also employed by
Wepin. Mr Yong remains an Executive Director of AIQ, with
substantially all of his costs now being paid by Wepin.
-- OctaPLUS platform and small team retained to develop product
and seek methods to monetise the registered user base.
-- Alcodes International, headquartered in Hong Kong, has seen
initial sales from IT consultancy projects. Executive Director
Edwin Li, who is based in Hong Kong, will focus on building the IT
consultancy business and look to expand it into other technology
areas such as digital assets.
-- In addition to other reductions, total headcount of the Group
is being cut by over 60% to 14 employees.
-- Board and senior management have taken a voluntary cut of 20%
in their fees, backdated from 1 May 2021.
-- As a result of these efficiency measures, the Group will
recognise savings of approximately GBP400,000 on an annualised
basis.
As at 31 May 2021, the Group had a cash balance of approximately
GBP920,000. The Group will provide further information at the time
of its interim results, which will be announced in July.
Graham Duncan, Chairman of AIQ, said: "Against a backdrop of
difficult trading conditions, we have implemented these measures to
cut costs and preserve cash while the business seeks to reposition
itself by widening its focus beyond e-commerce. The Board is
closely monitoring the progress of the Group and will take further
action if required. We are pleased, however, that the jobs of many
of our employees have been saved as part of the divestment of some
of the technology that had been developed by Alchemist Codes. We
will provide an update on developments in our interim results next
month."
Enquiries
AIQ Limited c/o +44 (0)20 7618 9100
Graham Duncan, Chairman
------------------------
VSA Capital Limited (Financial
Adviser & Broker) +44 (0)20 3005 5000
------------------------
Andrew Raca (Corporate Finance)
------------------------
Luther Pendragon (Media Relations) +44 (0)20 7618 9100
------------------------
Claire Norbury
------------------------
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END
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