REG - Smartspace Software - Disposal and change of registered office address

Smartspace SoftwareAnnouncement

17/07/2023 07:00

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RNS Number : 1443G  Smartspace Software PLC  17 July 2023

 

17 July 2023

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 ("MAR").  Upon the publication of this announcement via a
Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain.

SmartSpace Software Plc

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

Disposal of Anders + Kern and change of registered office address

 

SmartSpace Software Plc, (AIM:SMRT) the leading provider of 'Integrated Space
Management Software' for smart buildings and commercial spaces, is pleased to
announce that it has completed the sales of the freehold asset and the
business of Anders + Kern U.K. Limited (A&K).

The Company will receive aggregate cash consideration of £1.38m and is now
purely SaaS focussed with a strengthened working capital position that can be
utilised to fund growth.

Terms of the sale

The sale was effected through an initial asset disposal of the Group's
freehold building in Mildenhall to Oaktree Associated Holdings Limited, along
with a subsequent disposal of the remaining business of A&K as a share
sale to Aukett Swanke Group PLC (ASG).

The freehold building was unmortgaged at the time of the sale and was carried
on the Group's balance sheet at an asset value of £0.66m as at 31 January
2023, with no associated revenues or profits. Gross disposal proceeds from the
sale of the building totalled £0.86m in cash which was received on
completion.

The remaining business of A&K was sold through a sale and purchase
agreement for the entire issued share capital of A&K for gross
consideration of £0.52m, payable in cash following completion which occurred
on Friday 14 July 2023. The consideration is subject to a working capital
adjustment that is expected to be minimal with an absolute cap of the total
consideration of £0.56m. A&K was the Group's distributor of smart
workplace solutions employing 7 people. Its revenues for the year ended 31
January 2023 were £2.09m and the loss before tax in that period was £0.17m.
The net assets disposed of to ASG are estimated to be £0.25m including
£0.11m of cash. The sale and purchase agreement contains warranties and
indemnities by the Company usual for a transaction of this nature.

As a result, A&K has become a wholly owned subsidiary of ASG, an
AIM-quoted business providing Smart Buildings, Architectural and Design
Services. The A&K team will be retained by ASG and continue to trade under
the A&K brand targeting customers in the UK.

Total gross proceeds from the transactions will be received in cash and amount
to £1.38m exclusive of costs of circa £0.1m and cash disposed of £0.11m.
The funds will be used to strengthen the working capital of the Group.

As a result of this disposal the Group's headquarters and registered office
have been relocated to 4 Fordham House Court, Fordham House Estate, Fordham,
Cambridgeshire CB7 5LL.

Commenting on the transaction, Frank Beechinor, CEO of SmartSpace, said:

"Earlier this year we made it clear that, because of its focus on hardware
sales in the UK market, A&K did not fit with the Group strategy of
building an international SaaS software business. As a result, the decision
was made to find a new home for the business.

We are delighted to have reached an agreement with Aukett Swanke, an AIM
listed business. A&K will be a cornerstone in ASG's strategy to build
smart workplace technology solution business in the UK. SMRT will continue to
work closely with A&K as they will continue to offer SMRT software
products to their UK customers.

With hardware no longer part of the Group revenues we will generate gross
margins more in keeping with those of a high growth SaaS business, and
management will apply their energies solely on growing the software business.
The funds from this transaction will be used to strengthen Group's balance
sheet allowing us to find opportunities to accelerate growth of our software
business.

I would like to take this opportunity thank the team at A&K team for their
contribution during their time with SMRT and to wish them well for their
future as part of ASG."

Enquiries:

 SmartSpace Plc                                                                                  via Lisa Baderoon

 Frank Beechinor (CEO)

 Kris Shaw (CFO)

 Lisa Baderoon (Head of Investor Relations)                                                      +44 (0) 7721 413 496

 lbaderoon@smartspaceplc.com (mailto:lbaderoon@smartspaceplc.com)

 Canaccord Genuity (NOMAD &
 Broker)

                                                                                               +44 (0) 20 7523 8000
 Adam James

 Harry Rees

 

About SmartSpace Software PLC

SmartSpace Software plc is a fast growing SaaS-based technology business,
designing and building smart software solutions. The Company's software
solutions help transform employee engagement with modules which include
visitor management, desk management, meeting room management and analytics.

 

The operating brands of the business comprise of:

 

·      SwipedOn - SaaS visitor management, desk booking
(www.SwipedOn.com (http://www.SwipedOn.com) )

·      Space Connect - SaaS meeting room and desk booking
(www.spaceconnect.co (http://www.spaceconnect.co) )

 

For more information go to: www.smartspaceplc.com
(http://www.smartspaceplc.com)

 

About Aukett Swanke

Aukett Swanke Group has a strong foundation in architectural services and is
on a transformative journey to become a London-listed provider of Smart
Buildings and related services. ASG are uniquely positioned to ensure the
technical systems that run modern premises are designed as an integral part of
the structure, from the outset.

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