15 Nov 2017 17:02
BOS GLOBAL Holdings Limited
ACN 009 087 852
AIM Release
15 November 2017
Company Update
Further to the announcement of 9 November 2017, the Board of BOS GLOBAL Holdings Limited ("BOS GLOBAL" or the "Company") advises that the Company is pursuing urgent discussions with the Company's primary funding provider, Innovation Corporation Limited ("Innovation"), and the Company's broker regarding the Company's financial position and the options available for securing the required funding in excess of the minimum £125,000 monthly instalments due under the Innovation Convertible Note agreement to meet its liabilities and fund the ongoing business so as to retain value for shareholders and creditors. Innovation is a party to the s249D notice received by the Company (see announcement of 10 November 2017).
The Company continues to actively manage its creditor position although it would have insufficient funds to meet these liabilities should they need to be settled in full in the short-term. A summary of the Company's estimated working capital position is set out below. The Company stresses that this estimate is based on unaudited management accounts which bring with them a much lower level of reliability than an audited set of accounts1, 2. Consequently, the figures below should be considered indicative only.
Aged Creditors
Invoices expected but not yet received3 AUD325,000
1-30 days since invoice AUD225,000
31-60 days since invoice AUD 70,000
61+ days since invoice AUD 60,000
Employee and contractor entitlements AUD135,000
Other (eg tax liabilities) AUD 85,000
Total AUD900,000
Cash at bank AUD185,000
1. Values have been rounded to the nearest AUD5,000 to take account of potential fluctuations in exchange rates as BOS holds cash and pays expenses in a variety of currencies including GBP, AUD and USD
2. Please note that the figures in the working capital position estimate are prima facie based on a reference date of 27 October 2017 and as such so they have aged further since this time, however adjustments have been made to account for invoices paid since this date
3. This figure is an estimate only
The Company also advises that, as part of its cost cutting initiatives and more focused strategy, Bill Brooks, formerly the Global PMO Director for BOS GLOBAL, is no longer with the Company. The Company thanks Bill for his service and wishes him well in his future endeavours.
The Company cautions that the discussions with its broker and Innovation are incomplete and there can be no guarantee that there will be a successful outcome which provides the Company with the funding required. The Company also cautions that there may not be alternative sources of timely funding available outside of the groups above. Should sufficient funding not be available in the short term to meet the Company's requirements, placing the Company into administration may be a possible outcome. The Board remains committed to seeking a viable solution and will make further announcements as appropriate.
This announcement contains inside information for the purpose of Article 7 of the Market Abuse
Regulation (EU) No. 596/2014.
**ENDS**
For further information please visit www.bosglobal.com or contact:
Adam Webb Non-Executive Director David Ireland Chairman | BOS GLOBAL Holdings Limited | Tel: +44 (0) 7825 443319
Tel: +61 (0)8 9322 4071
|
Andrew Thomson NOMAD | RFC Ambrian Limited | Tel: +61 (0) 8 9480 2500 |
Charles Goodfellow / Lucy Williams Broker | Peterhouse Corporate Finance Limited | Tel: +44 (0) 20 7220 9791 |
Megan Dennison / Charlotte Page Financial PR | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Notes
BOS GLOBAL is a London listed (AIM:BOS), cloud based software developer with a suite of products that enable organisations to transform their operations through improving workforce engagement. The Company's BOS Time product is a component of its Global Enterprise Productivity Platform ("PaaS"), BOS 360 Work Patterns, which incorporates patented technology that uses workforce analytics to render real time views of worker activities as Work Patterns. BOS has a team experienced in designing, building, marketing, selling and supporting enterprise technology solutions and has been seeking to build a partnership network to assist the business with market penetration.
The Company also has a 40% interest in Call Design Pty Ltd, a profitable, Australian based, global provider of workforce optimisation tools, focused particularly on call centre services. Call Design has a significant multi-sector client base, which includes all four of Australia's major banks, leading international telecommunications companies, blue chip insurers and governmental bodies, with a current operational reach spanning 26 countries. This synergistic investment seeks to provide multiple cross-selling opportunities in line with BOS GLOBAL's strategy to deliver a comprehensive business optimisation offering.