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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 EUR1.

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 EUR0.5m. 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 EUR39,449 on turnover of EUR1,549,279. Its net assets at 31 December 2021 amounted to EUR415,309.

For the year ended 31 December 2022, for which accounts have not been audited, Glanaco made an (unaudited) loss before tax of EUR75,451 on (unaudited) turnover of EUR1,743,830. Its (unaudited) net liabilities at 31 December 2022 amounted to EUR42,514.

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.

 
                            Nigel Burton, Interim 
 DeepVerge plc               CEO                     +44 (0) 7785 234447 
 SPARK Advisory Partners 
  Limited                                            +44 (0) 113 370 
  (Nominated Adviser)       Neil Baldwin              8974 
                           -----------------------  -------------------- 
 Turner Pope Investments    Andy Thacker/James       +44 (0) 20 3657 
  (TPI) Limited (Broker)     Pope                     0050 
                           -----------------------  --------------------

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END

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(END) Dow Jones Newswires

August 07, 2023 02:00 ET (06:00 GMT)

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