REG - Deepverge PLC - Disposal; Update

DeepvergeAnnouncement

07/08/2023 07:00

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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 €1.

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 €0.5m.
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 €39,449 on turnover of €1,549,279.
Its net assets at 31 December 2021 amounted to €415,309.

For the year ended 31 December 2022, for which accounts have not been audited,
Glanaco made an (unaudited) loss before tax of €75,451 on (unaudited)
turnover of €1,743,830. Its (unaudited) net liabilities at 31 December 2022
amounted to €42,514.

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.

 DeepVerge plc                                   Nigel Burton, Interim CEO  +44 (0) 7785 234447
 SPARK Advisory Partners Limited                 Neil Baldwin               +44 (0) 113 370 8974

 (Nominated Adviser)
 Turner Pope Investments (TPI) Limited (Broker)  Andy Thacker/James Pope    +44 (0) 20 3657 0050

 

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