LONDON (Alliance News) - Coms PLC said Tuesday it has agreed to sell the business and some assets of its telecoms operations to Timico Ltd for an initial GBP2.5 million, with a further GBP1 million payable depending on the trading performance of the business.
Following the completion of the sale, Coms will be comprised of its remaining infrastructure business Redstone and London video production company Darkside Studios.
Coms said that Timico will take up responsibility for all key supplier arrangements, but Coms will retain some liabilities, including two leasehold properties occupied by the telecoms business.
Coms said it believes the sale of business is in the best interests of the company and all stakeholders. The business consisted of a number of acquisitions that had never been fully integrated, it said, and despite efforts to restructuring the business trading losses continued. The Coms board decided it would need significant further investment and focus to achieve profitability, the company said.
It will use the proceeds from the sale to reduce its liabilities and its overdraft facility.
Coms now plans to focus instead on Redstone, focusing on the company's 'Smart Buildings' product and expanding its managed services business.
"The board intends to capitalise on accelerating growth in the construction industry and, in particular, the fast growing Smart Buildings sector where Redstone has already delivered strong referenceable solutions to a number of landmark projects. The potential in these markets as they go through both structural and technological change is enormous," said Non-Executive Chairman Frank Beechinor in a statement.
The company said its efforts to recruit a new chief executive are underway, and it is currently engaged with a number of shortlisted candidates, following the resignation of former Chief Executive David Breith in March.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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