12 Dec 2018 13:42
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
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12 December 2018
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Porta Communications Plc
("Porta" or "the Group")
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Porta Disposes of Interest in Capital Access Holdings Limited and
Cancels Remaining £1m Guarantee
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Porta Communications Plc (AIM: PTCM) announces that it has successfully entered into an agreement with Industrial Lending 1 ("IL1") to dispose of its entire 39.5% holding in Capital Access Holdings Limited ("Capital Access") to IL1 in return for IL1 agreeing to cancel Porta's guarantee of up to £1m to IL1 in respect of Capital Access.
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As at 30 June 2018, the investment in Capital Access had a carrying value of nil on Porta's balance sheet, having been fully written-down during 2017. As at the date of disposal, Porta recognised net debts owed by Capital Access of £0.1m, which will be written-off as part of this transaction. Capital Access contributed a loss of £119,784 during the year to 31 December 2017, as reported in Porta's result for the year to 31 December 2017.
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No cash consideration is payable to Porta. In exchange for Porta's equity holding in Capital Access, writing off the recognised net debts owed to Porta by Capital Access of £0.1m and the provision of three months' free rent premises for Capital Access, IL1 have agreed to release Porta from its remaining guarantee of up to £1m of the debt that Capital Access has with IL1, which is recognised as a contingent liability by Porta and if called, would have been satisfied by the issue of Ordinary Shares in Porta at a value of no less than 10p.
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Commenting on the disposal, Porta Joint CEO, Emma Kane said:
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"As we continue to consolidate and transform our business and eliminate non-core assets, we have also looked to de-risk areas in which we have limited influence or control. Importantly, with this transaction, we have removed a potential £1m liability from the Group, while retaining the capability within the Group to offer investor access services through our existing wholly-owned subsidiary Newgate."
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The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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Enquiries to:
Porta Communications Plc
Rhydian Bankes, CFO
www.portacomms.com
+44 (0) 20 7680 6550
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Newgate Communications (Media Enquiries)
Bob HuxfordAdam Lloyd+44 (0) 20 7680 6550
porta@newgatecomms.comÂ
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Grant Thornton UK LLP (Nominated Adviser)
Samantha Harrison
Ben Roberts
Seamus Fricker
+44 (0) 207 383 5100
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N+1 Singer (Broker)
Mark TaylorLauren Kettle+44 (0) 20 7496 3000
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Notes for Editors
· Porta is a fully integrated communications agency, operating locally, nationally and internationally, with specialisms including financial, corporate and consumer public relations, public affairs and research and multi-capability marketing, brand and creative communications.
· The Group has offices in Abu Dhabi, Beijing, Brisbane, Bristol, Canberra, Cardiff, Leeds, Edinburgh, Hong Kong, London, Manchester, Melbourne, Perth, Shanghai, Singapore and Sydney.
· Further information on Porta Communications is available at www.portacomms.com
· Further information on Newgate Communications is available at www.newgatecomms.com
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