REG - Cloudcoco Group PLC - Proposed Disposal of CloudCoCo Connect Limited

CloudcocoAnnouncement

18/10/2024 07:00

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RNS Number : 6826I  Cloudcoco Group PLC  18 October 2024

The information contained within this announcement is deemed by CloudCoCo to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

 

18 October 2024

 
CloudCoCo Group plc

("CloudCoCo", the "Company" or the "Group")

 

Proposed Disposal of CloudCoCo Connect Limited

 

CloudCoCo (AIM: CLCO), a leading UK provider of managed IT services and
communications solutions to private and public sector organisations, announces
that one of its subsidiaries, CloudCoCo Holdings Limited ("Holdings"), has
entered into an agreement to conditionally dispose of its wholly owned
subsidiary, CloudCoCo Connect Limited ("CloudCoCo Connect") to The BE Company
of United Kingdom Limited ("The BE Company") for cash consideration of
£250,000, including the sale of net liabilities in excess of £1.7 million
(the "Proposed Disposal").

 

The Board intends to use the cash proceeds from the Proposed Disposal for
working capital purposes.

 

The BE Company is a provider of clean energy infrastructure for
power-intensive industries, utilising a project developer model that promotes
Clean Energy-as-a-Service. Their core competencies include project
development, management, and financing, offering low-cost clean energy at an
industrial scale.

 

CloudCoCo Connect offers co-location and data centre services to 260 data
centre and network customers across its infrastructure located in 32 data
centres across the UK. As announced on 16 October 2024, certain assets of the
managed services, lifecycle and cloud divisions from CloudCoCo Connect have
been transferred to CloudCoCo Limited for the conditional sale of that company
(the "Re-organisation"). For the year ended 30 September 2023 and after the
Re-organisation, CloudCoCo Connect contributed approximately £7.4 million of
revenues to the Group and had a loss before tax of approximately £99,000.

 

Completion of the Proposed Disposal will occur following satisfaction of the
condition precedent as set out in the share purchase agreement ("Completion"),
being the completion of the transfer of contracts of employment of certain
employees to The BE Company group pursuant to the Transfer of Undertakings
(Protection of Employment) Regulations 2006. The Board currently expects
Completion to occur on 31 October 2024. The Proposed Disposal is not
conditional on the sale of CloudCoCo Limited that was announced on 16 October
2024.

 

Following completion of the Proposed Disposal and the sale of CloudCoCo
Limited (as announced on 16 October 2024), the Company will continue as an IT
value-added reseller (VAR) to deliver enterprise-grade, on-demand IT products
and services to customers through its wholly owned subsidiaries, Systems
Assurance Limited and More Computers Limited.

 

Simon Duckworth, Non-Executive Chair, commented:

 

"The sale of CloudCoCo Connect to The BE Company allows the Group to focus on
expanding our IT value-added reseller and e-commerce businesses, areas where
we see significant opportunities for organic growth. This strategic shift will
position us to better navigate future challenges and explore new opportunities
for the benefit of all shareholders. I would like to thank all of our
colleagues in the Connect business for their hard-work and dedication and wish
them a prosperous future under new owners, who have exciting plans for that
business."

 

Contacts:

 CloudCoCo Group plc                                          Via Alma

 Simon Duckworth (Non-Executive Chair)

 Darron Giddens (CFO)

 Allenby Capital Limited - (Nominated Adviser & Broker)       Tel: +44 (0)20 3328 5656

 Jeremy Porter/Daniel Dearden-Williams (Corporate Finance)

 Tony Quirke/Amrit Nahal (Equity Sales)

 Alma Strategic Communications - (Financial PR)               Tel: +44 (0)20 3405 0205

 David Ison                                                  cloudcoco@almastrategic.com

 Kieran Breheny

 Will Merison

About CloudCoCo

 

Supported by a team of industry experts and harnessing a diverse ecosystem of
partnerships with blue-chip technology vendors, CloudCoCo makes it easy for
private and public sector organisations to work smarter, faster and more
securely by providing a single point of purchase for their Connectivity,
Multi-Cloud, Collaboration, Cyber Security, IT Hardware, Licencing, Support
and Professional Services.

 

CloudCoCo has headquarters in Leeds and regional offices in Warrington,
Sheffield and Bournemouth.

 

www.cloudcoco.co.uk (http://www.cloudcoco.co.uk)

 

 

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