IDE Group Holdings PLC Completion of Strategic and Operational Review (9660D)
October 15 2018 - 1:00AM
UK Regulatory
TIDMIDE
RNS Number : 9660D
IDE Group Holdings PLC
15 October 2018
IDE Group Holdings Plc
("IDE", the "Group" or the "Company")
Completion of Strategic and Operational Review
Sale of 365 ITMS Limited
Board Changes
IDE Group Holdings plc, the mid-market network, cloud and IT
managed services provider, today announces the results of its
strategic and operational review including the sale of 365 ITMS
Limited ("365"), one of the Group's subsidiaries, for a cash
consideration of GBP3 million.
As announced in the Company's interim results for the six months
to 30 June 2018, as part of the strategic and operational review
the Group has been split back into the three component parts which
comprised the original acquisitions made by the Company with a view
to potentially disposing of one or more of these component
parts.
To that end, the Company announces the sale of 365 to PTCA Newco
Limited ("PTCA"), a newly incorporated company owned by certain
members of the management team within 365, on a cash free, debt
free basis with a normalised level of working capital (the "Sale").
The consideration for the Sale is GBP3 million, payable in cash.
The proceeds of the Sale will be used to reduce the Company's net
debt. MXC Guernsey Limited, a wholly owned subsidiary of MXC
Capital Limited ("MXC"), IDE's largest shareholder and the company
which Ian Smith, Executive Director of IDE, represents, has
provided debt funding to PTCA to enable PTCA to complete the Sale.
MXC does not have an equity interest in PTCA.
365 was acquired by the Group in April 2017 and offers a range
of complementary data centre, network, security and cloud services.
In the year to 31 December 2017, 365 generated revenues of GBP10.4
million and an adjusted EBITDA* of GBP0.4 million. As at 31
December 2017, 365 had net assets of GBP1.6 million. In addition,
prior to the Sale certain assets relating to PACT, the Group's
business unit focused on cyber security, including contracts and
staff, were transferred to 365. In the year to 31 December 2017,
these assets generated revenues of GBP2.5 million and an adjusted
EBITDA* loss of GBP1.1 million.
Following the Sale, the Group's remaining two businesses are IDE
Group Manage Limited, which provides outsourced IT services,
including 1st, 2nd and 3rd line IT support and network-based
solutions, and IDE Group Connect Limited, which provides network
services and data centre hosting services. There are no ongoing
discussions with a view to disposing of these businesses and the
Board is focused on right-sizing the Group to enable it to trade
profitably. There is further work to be done in order to achieve
this which is currently being undertaken but the Board believes
that this is the best option for the Group to enable it to recover
the value that has been lost.
In order to assist with the Group's restructure, Andy Parker has
become Executive Chairman of IDE, effective immediately. The
Directors will look to add an independent non-executive director to
the Board in the coming months and it is expected that Andy Parker
will revert to being Non-Executive Chairman once the Group has
completed its restructure.
* Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation, exceptional items and (loss)/gain on
disposal of fixed assets
IDE Group Holdings Plc Tel: +44 (0)344
Andy Parker, Non-Executive Chairman 874 1000
Ian Smith, Executive Director
finnCap Limited Tel: +44 (0)20 7220
Nominated Adviser and Broker 0500
Corporate finance: Jonny Franklin-Adams/
Scott Mathieson/ Hannah Boros
ECM: Tim Redfern/ Richard Chambers
MXC Capital Markets LLP Tel: +44 (0)20 7965
Financial Adviser 8149
Charlotte Stranner
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.
END
DISBZLFFVBFBFBX
(END) Dow Jones Newswires
October 15, 2018 02:00 ET (06:00 GMT)
Tialis Essential It (LSE:TIA)
Historical Stock Chart
From Apr 2024 to May 2024
Tialis Essential It (LSE:TIA)
Historical Stock Chart
From May 2023 to May 2024