TIDMDVRG

RNS Number : 4310I

Deepverge PLC

07 August 2023

7 August 2023

DeepVerge plc

("DeepVerge" or "the Company" or "the Group")

Disposal; Update

The Company announces the sale of Glanaco Limited, the engineering services company based in Cork, Ireland, to Tony Ryan and Michael Fitzgerald, the current management and previous owners, for consideration of EUR1.

The Company announced on 26 June 2023 that the Board had taken the decision to no longer support the ongoing costs of the operating businesses, and was seeking to realise whatever value is possible through the sale of one or more of the Labskin, Modern Water and Glanaco business units.

Since the acquisition of Glanaco in March 2022 it has incurred costs and liabilities related to other parts of the Group and has been left with insufficient cash to continue to operate as a going concern. By transferring the business back to management the business and associated jobs will be saved, and the Group's net creditors will reduce by approximately EUR0.5m. Glanaco will continue to provide services to Labskin and Modern Water on an arms' length basis for a transitionary period as necessary to support the ongoing efforts to realise value through the sale of any of part or all of these businesses.

Glanaco financial information

In its most recent published accounts, for the year ended 31 December 2021, Glanaco reported a profit before tax of EUR39,449 on turnover of EUR1,549,279. Its net assets at 31 December 2021 amounted to EUR415,309.

For the year ended 31 December 2022, for which accounts have not been audited, Glanaco made an (unaudited) loss before tax of EUR75,451 on (unaudited) turnover of EUR1,743,830. Its (unaudited) net liabilities at 31 December 2022 amounted to EUR42,514.

Update The Board's expectation remains that the current process will result in the sale, closure or administration of all Group subsidiaries.

Further updates will be given as appropriate.

 
                            Nigel Burton, Interim 
 DeepVerge plc               CEO                     +44 (0) 7785 234447 
 SPARK Advisory Partners 
  Limited                                            +44 (0) 113 370 
  (Nominated Adviser)       Neil Baldwin              8974 
                           -----------------------  -------------------- 
 Turner Pope Investments    Andy Thacker/James       +44 (0) 20 3657 
  (TPI) Limited (Broker)     Pope                     0050 
                           -----------------------  --------------------

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DISEAFPKEEDDEAA

(END) Dow Jones Newswires

August 07, 2023 02:00 ET (06:00 GMT)

Deepverge (LSE:DVRG)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Deepverge Charts.
Deepverge (LSE:DVRG)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Deepverge Charts.