Disposal

RNS Number : 0627D

Access Intelligence PLC

04 July 2016

 

4 July 2016

ACCESS INTELLIGENCE PLC

("Access Intelligence", "the Company" or "the Group")

DISPOSAL

Access Intelligence Plc (AIM: ACC), a leading supplier of Software-as-a-Service (SaaS) solutions for reputation and operational risk management, announces that it has agreed terms to dispose of 100% of its subsidiary AITrackRecord Limited ("AITR") to TrackRecord Holdings Limited ("TrackRecord"), a newly formed company founded by David McNair Scott, current CEO of TrackRecord.

Terms of the Disposal

AITrackRecord provides a powerful complete solution for training, competence and compliance management, designed specifically for the highly regulated UK financial services industry.

Access Intelligence has entered into an agreement with TrackRecord whereby Access Intelligence will receive 20% of the share capital of TrackRecord and a deferred cash payment of approximately £100,000, payable when a similar amount is received by AITR from HMRC as a R&D tax credit for AITR's business in the pre-acquisition period.

Joanna Arnold will also be joining the board of TrackRecord as a Non-Executive Director and the Group's representative.

TrackRecord recently received £2.1 million in cash in return for 80% of the equity in the business, therefore the value of Access Intelligence's 20% stake is approximately £0.5 million.

For the year ended 30 November 2015, AITR contributed revenue to the Group of £0.7 million, an EBITDA loss of £0.4 million and a loss before tax of £2.4 million. The total value of the net liabilities being disposed of as at 30 November 2015 was £1.6 million.

Use of Proceeds

The £100,000 of deferred consideration will provide additional working capital to support the growth and development of the Group.

Joanna Arnold, CEO of Access Intelligence, said: "I am delighted that we have been able to secure a significant investment into TrackRecord via this new venture in return for reducing ourselves to a minority holding of 20%. We believe that with the new money coming into TrackRecord, the business now has the capital to expand and we are pleased to be part of the process."

David McNair Scott, CEO of TrackRecord said "I am excited to be taking on the AITrackRecord business in partnership with Access Intelligence.  We are well positioned to take advantage of the burgeoning market opportunity and have a unique capability to help our customers through this period of change driven by the UK's regulatory mandate."

For further information:

Access Intelligence plc	0843 659 2940
Joanna Arnold (CEO) Daryl Paton (CFO)
Allenby Capital Limited (Nominated Adviser & Broker)	020 3328 5656
David Worlidge / James Thomas

 

END

 

 

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