Primorus Investments PLC Investment in Engage Technology Partners Limited (4801H)
March 13 2018 - 2:00AM
UK Regulatory
TIDMPRIM
RNS Number : 4801H
Primorus Investments PLC
13 March 2018
Primorus Investments plc
("Primorus" or the "Company")
Further GBP500,000 Investment in Engage Technology Partners
Limited
Primorus Investments plc (AIM: PRIM, NEX: PRIM) is pleased to
announce it has today, by way of subscription at GBP22 per share,
invested a further GBP500,000 in Engage Technology Partners Limited
("Engage").
In September 2017 the Company invested, by way of subscription
at GBP15 per share, GBP400,000 in Engage on a pre-new money
valuation of GBP15m as part of a fully subscribed GBP5.25m funding
round. Following this further subscription, Primorus will hold a
total of 49,394 shares in Engage, representing circa 3.6% of the
issued share capital.
The subscription price of GBP22 per share represents a 46%
premium to the September 2017 placement price of GBP15 per share
and represents a portion of rolling GBP4m capital raise by
Engage.
Alastair Clayton, Executive Director commented - "Since our
initial investment in September 2017, sales of the Engage platform
have shown strong growth and we have recently been informed by
management that over 44 corporate clients are signed up to the
platform, thereby mandating the product use to their supply chains
and service providers. Active users of the platform include large
construction companies, well known high-street restaurant chains,
numerous small and mid-sized agencies as well as larger labour
supply companies across the UK."
He added - "As a purely SaaS offering with a now proven viral
sales model, we see Engage as a priority investment for Primorus
with the potential to deliver an outstanding return for our
shareholders on either a trade sale and or IPO basis. Subject to
available funds, Primorus will likely participate further in this
rolling GBP4m raise that is due to close at the end of April/Early
May. We have been informed it is the intention of Engage that this
round will be the last funding round before a possible IPO and that
discussions with City brokers to support an IPO in late 2018 or
early 2019 have commenced."
About Engage
Founded in 2013, Engage builds software to assist with finding,
hiring, compliance and paying of the rapidly growing contingent
workforce in the UK. Their platform supports the entire workflow,
and simultaneously services employers, recruitment agencies,
payroll companies, accountants and workers. Having everyone in the
supply chain sharing the same platform makes a difficult,
expensive, and error-prone process simple and more cost
effective.
At present the recruitment industry is fragmented by dozens of
software suppliers providing only part of the functionality
required, to one customer at a time. This generates duplication of
effort, administration errors and fraud as data is re-keyed and
passed manually between parties. Engage's solution to this is a
SaaS platform hosted on Amazon Web Services, available securely via
the Cloud on any internet device, by the whole market,
simultaneously.
Engage is sold via a referral and viral sales model and does not
have a marketing budget as part of its business model. Its
directors believe it is already challenging the large
enterprise-based incumbents via a low-cost SaaS model of charging
GBP1.99 per worker per week.
Engage has rapidly gone from a minimally viable product to a
fully saleable and scalable SaaS platform which has built up an
impressive and rapidly growing customer base including many
household names.
In the financial year ended 31 May 2017, Engage incurred a loss
of GBP1.71m.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 and has been arranged for
release by Alastair Clayton, Executive Director of the Company.
For further information, please contact:
Primorus Investments
plc: +44 (0) 20 7440 0640
Alastair Clayton
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers
LLP
James Caithie / Sandy
Jamieson
Broker: +44 (0) 20 3621 4120
Turner & Pope Investments
Andy Thacker
This information is provided by RNS
The company news service from the London Stock Exchange
END
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