9 Apr 2019 07:00
7digital Group plc
("7digital" or "the Company")
Business Update
7digital (AIM:7DIG), the global leader in B2B end-to-end digital music solutions, announces that the new leadership team at 7digital, John Aalbers, Chief Executive Officer, and Julia Hubbard, Chief Financial Officer, whose appointments were announced on 25 and 20 March 2019 respectively, will formally be appointed to the Board as directors with effect from 9 April 2019. Further to the announcement of 25 March 2019, Simon Cole has also today formally stood down from the Board as Chief Executive Officer.
John Aalbers has started a review of the business in order for him to formulate his vision and strategy to take the Company forward. It is intended that this will be presented to shareholders in the forthcoming report and accounts for the year ended 31 December 2018. The Board does not intend to give a pre-close update in respect of FY2018 ahead of these audited accounts as was previously planned due to ongoing discussions regarding the correct accounting treatment and recognition of the settlement received from MediaMarktSaturn in March 2019, which may require some of the settlement of €4,000,000 to be recognised in FY2019 rather than FY2018.
The negotiations and ultimate loss of MediaMarktSaturn as a customer prior to John's arrival at the Company has diverted management attention and led to disruption within the business during the first quarter as well as having a marked effect on customer sentiment. This has slowed both adoption by new clients and payment by existing debtors. The sales strategy and execution are the Board's and new management's highest priority focus in the short term.
Under Julia Hubbard's supervision, the Company has started working on the preparation of the accounts for the 2018 financial year and reviewing budgets for the current year in conjunction with John's review of the Company strategy. This review is taking a more circumspect view of the sales pipeline. Whilst this work has not concluded, and no final conclusions have been reached as to quantum, the Board's current view is that the business will require material further equity and/or debt funding in the next quarter without which the Company would be unable to continue as a going concern. The Board will assess financing options for the Company however, it is likely that this would entail significant dilution for shareholders.
The following disclosures in relation to John Bernard Aalbers (aged 51) are made in accordance with Schedule 2(g) and Rule 17 of the AIM Rules.
Current Directorships/Partnerships | Past Directorships/Partnerships (5 years) |
Ideadrop Limited | Arts Alliance Media (Digital) Limited |
| Arts Alliance Media Limited |
| Aamd Limited |
| AAM Yellow Silo B.V. |
| AAM Orange Silo B.V. |
| AAM Red Silo B.V. |
| AAM Pink Silo B.V. |
| AAM Purple Silo B.V. |
| AAM Green Silo B.V. |
| AAM Blue Silo B.V |
| AAM (Digital Cinema) B.V. |
| AM Deploying Entity B.V. |
| AAM (Digital Cinema) Cooperatie U.A |
The following disclosures in relation to Julia Elizabeth Hubbard (aged 50) are made in accordance with Schedule 2(g) and Rule 17 of the AIM Rules.
Current Directorships/Partnerships | Past Directorships/Partnerships (5 years) |
Smartsense Services Ltd | Amino Technologies plc |
Waterloo Street BPRA Property Fund LLP | Amino Holdings Limited |
Eclipse Film Partners No. 12 LLP | Amino Communications Limited |
Timeless Releasing LLP | Assethouse Technology Limited |
| Booxmedia Oy |
| Amino Communications Technology Service (Shanghai) Co Limited |
| Amino Communications AB |
| Amino Technologies (HK) Limited |
| Entone Inc. |
For further information please contact:
7digital | 020 7099 7777 |
John Aalbers, CEO Julia Hubbard, CFO Holly Ashmore, PR Manager |
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Arden Partners (nominated adviser and broker) |
020 7614 5900 |
Ruari McGirr/ Tom Price/ Benjamin Cryer - Corporate Finance
Yellow Jersey PR Georgia Colkin Charles Goodwin 7digital@yellowjerseypr.com
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