16 Mar 2018 15:04
16 March 2018
The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
MBL Group PLC
("MBL" or the "Company" or the "Group")
Update on corporate investigations
The Board of MBL Group plc (AIM: MUBL) wishes to update shareholders on the results and progress of the corporate investigations which have been undertaken at the request of shareholders.
Investigation Number 1
On 24 October, 2017 the Board announced through RNS that:
"After consultation with certain of the Company's substantial shareholders, the Board intends to work with those shareholders to look into concerns that they have regarding the dilution of Company assets in recent times, and in particular an allegation regarding a breach of the Group's IT security. The Board has previously investigated this matter and found no evidence of wrongdoing but is prepared to work with the shareholders to further look into this matter. A further update will be made when appropriate."
A subsequent announcement was made on 22 December 2017 as part of the Interim Results:
"As a result of the request the Board requested the substantial shareholder provide support for the allegations to the Board and instructed a firm specialising in IT forensics. The work undertaken has been extensive and covered a period spanning several years. No evidence supporting the allegation of a breach of IT security has been identified and the Board regard this investigation as concluded with no further action being required."
The Board resolved to undertake the investigation following a commitment made by a substantial shareholder to meet the cost of a specific service provider to undertake the investigation. The Board, following advice, appointed an independent service provider with considerable IT forensic experience to undertake the review. The cost of the investigation has been borne by the Company.
The Board are mindful of costs associated with these types of requests and whilst resolved to consider requests are also mindful to adopt a commercial approach in the best interest of maintaining value for shareholders.
Investigation Number 2
On 22 December 2017 the Board announced that:
"Recent expenses have been a concern for some shareholders and the Board has received a request from a shareholder to review the dilution of company assets over the past twenty-four months. The Board is currently working with the shareholder to ascertain the scope of such a review and the best way of dealing with the request without incurring further additional and unnecessary costs."
The Board received the scope of the request from a shareholder on 22 January 2018. A review has been undertaken and considerable primary information passed to the Company's solicitors for consideration. Although the shareholder has now agreed not to pursue any claims arising from the review, the Board will complete the review, with the advice of the Company's Solicitors, at the conclusion of which it will consider whether any further action is required.
Further updates will be made as appropriate.
ENDS
For further information, please contact:
MBL Group plc Tel: 01772 440440
Anton Lane
James Reynolds
SPARK Advisory Partners Limited Tel: 0113 370 8970
(NOMAD)
Mark Brady