Catena Group PLC Trading Update & Notice to Exercise Insight Option (2168N)
January 28 2021 - 5:02AM
UK Regulatory
TIDMCTNA
RNS Number : 2168N
Catena Group PLC
28 January 2021
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
28 January 2021
Catena Group PLC
("Catena", the "Company" or the "Group")
Notice to exercise Insight Option and Trading Update
Catena Group Plc (AIM:CTNA) is pleased to announce it has
provided notice of its intent to exercise the option it holds to
increase its shareholding in Insight Capital Partners Ltd
("Insight"), the data science and machine learning solutions
company, to 30.9 per cent. of Insight's fully diluted ordinary
share capital ("Notice")(the "Option"). The Notice served today is
an indication of the progress Catena and Insight are making toward
Catena potentially acquiring the balance of issued share capital of
Insight.
In addition to the Notice, Catena is pleased to provide a
trading update for the 12 month period ended 31 December 2020
("FY2020"), in accordance with the Company's announcement "Change
of Accounting Reference date" released on 30 December 2020.
Background on the Option and Strategy
As previously announced, Catena has begun discussions with
Insight with respect to acquiring the balance of its issued share
capital. Having given Notice, Catena now has three months to
complete the exercise of the Option and it is anticipated that
exercise will form part of the transaction to acquire the remaining
issued share capital of Insight.
The acquisition of Insight by Catena constitutes a reverse
takeover under the AIM Rules and, as such, will be conditional on,
amongst other things, the approval of Catena shareholders at a
general meeting. The current temporary suspension of the Company's
shares to trading on AIM will be lifted upon publication of an
admission document by Catena in respect of the proposed reverse
takeover of Insight together with a notice of general meeting (the
"Admission Document").
Upon exercise of the Option, Catena will be interested in 31 per
cent. of Insight's fully diluted ordinary share capital. This is
slightly higher than the previously notified 30.2 per cent
reflecting a reduced number of Insight employee options.
Trading update FY2020
Preliminary unaudited review of the Group's trading for FY2020
indicates that Catena sustained a loss in line with management's
expectations. The Board are satisfied with this result given the
financial impact of the Covid-19 pandemic on the Group's school
sports coaching business. The Group achieved this outcome as a
result of aggressive action to reduce costs and the school sports
coaching business' utilisation of various Government Covid-19
schemes including a business interruption bank loan, the job
retention scheme and VAT payment deferral.
Specifically, the Group is expected to report for FY2020:
-- Revenue of GBP883,000 (2019: GBP1,683,000)
-- Loss before interest and taxation of approximately GBP492,000 (2019: loss of GBP218,000)
-- Cash as at 31 December 2020 of GBP1,032,000 (2019: GBP637,000)
The Group is scheduled to release its unaudited interim results
for the 12 months ending 31 December 2020 by 31 March 2021, with
audited results for the 15 months ending 31 March 2021 by 30
September 2021.
Matthew Farnum-Schneider, Chief Executive of Catena
commented:
"We are pleased with the commercial development being made by
the Insight management team as well as the collaborative progress
with respect to Catena obtaining 100% ownership of Insight. We look
forward to providing further updates on both subjects in due
course."
* ENDS *
For further information, please visit www.catenagroup.co.uk or
contact:
Catena Group PLC
Matthew Farnum-Schneider, Chief Executive +44 (0)20 3744 0900
Zeus Capital Limited (Nominated Adviser
& Broker)
David Foreman / Daniel Harris / Rishi Majithia +44 (0) 203 829 5000
SEC Newgate (Financial PR) +44 (0) 7540 106 366
Robin Tozer catena@secnewgate.com
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END
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