REG - Software Circle PLC - Update re. the sale of Works Manchester Limited

Software CircleAnnouncement

07/12/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231207:nRSG9413Va&default-theme=true

RNS Number : 9413V  Software Circle PLC  07 December 2023

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.

 

7 December 2023

 

Software Circle plc

("Software Circle" or "the Company" or the "Group")

 

Further update regarding the sale of Works Manchester Limited

 

Software Circle plc (AIM:SFT) announces the following update regarding the
sale of Works Manchester Limited ("Works Manchester"), which was first
announced on 19 May 2022.

 

Works Manchester has informed the Company that it has filed a notice of
intention to appoint administrators.

 

As announced on 1 June 2023, the Company had not received the first instalment
of deferred consideration from Rymack Sign Solutions Limited ("Rymack"), which
was due on 31 May 2023 in respect of the purchase of Works Manchester.
Furthermore, as announced in the Company's interim results on 27 November
2023, due to the reduced confidence of receiving payment of any deferred
consideration from Rymack, the carrying value of the £2.81m due under the
sale and purchase agreement has been reduced to £0.35m. The Company is in the
process of taking steps to recover the sums due and will update the market
again in due course.

 

The Nettl Systems management team have been making arrangements with
alternative suppliers so that continuity of supply is in place for products
available through the Nettl Systems platform to minimise any impact on the
Nettl partner network. Migration of product supply has begun and will be
completed in the coming days.

 

As announced on 15 September 2023, the Group raised £23.4m to continue its
acquisition strategy and drive long term shareholder value. The Group's focus
remains steadfastly on this. We are currently in exclusive discussions with
acquisition targets with a collective turnover of approximately £3.6m and an
adjusted EBITDA of £1.2m. These are progressing through the due diligence
process. Software Circle will continue to update the market as its acquisition
strategy progresses.

 

 

For further information:

Software Circle plc

Gavin Cockerill
(CEO)
07968 510 662

 

Allenby Capital Limited (Nominated Adviser and Broker)

David Hart / Piers Shimwell (Corporate Finance)
                         0203 328 5656

Stefano Aquilino / Joscelin Pinnington (Sales and Corporate Broking)

 

Notes to editors:

 

Software Circle plc is a UK based acquirer of vertical market software
businesses. Our aim is to help founders find the right exit strategy, without
fuss or drama. Continuing operations in an independent, decentralised way.
Keeping the entrepreneurial spirit and culture that exists in the businesses
we acquire. Providing a permanent home for their teams, management talent and
culture.

 

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDBIBDDSGGDGXL