4 Sep 2015 09:02
4 September 2015
Coms plc
AGM Statement and Progress Update
Coms plc (the "Company") a leading provider of infrastructure, managed services and smart buildings solutions, is today issuing a progress update in relation to the period from 1 February 2015. This statement will be delivered to those attending the Annual General Meeting today.
As reported in the 2015 Annual Report, the losses that will be reported in respect of the telecommunications businesses in the four months to the end of May are expected to be such that the Group will report a further substantial loss in respect of the first half. Since disposing of the Company's telecommunications businesses on 31 May 2015, the Group now comprises the core business of Redstone Converged Solutions Limited ("Redstone") and Darkside Studios. Darkside Studios is expected to report a small loss in the first half as a result of disruption caused by the problems in the telecommunications division. However, Redstone has had a good start to the year and its profits are expected to exceed the ongoing plc overheads and Darkside Studios' loss.
In the first half Redstone secured £13m of new contracts, most of which will be executed in the second half of the year and which demonstrate Redstone's broad product offering and diversified client base. Contracts were signed with international financial services companies, international accountancy firms, a search engine company, a commercial property company and a national gallery. Two new smart buildings contracts were signed and other contracts spanned ICT services, designing and delivering a data centre, supplying data centre services and delivering infrastructure.
Following the disposal of the telecommunications businesses, the Board has started to make some progress in extricating itself from liabilities associated with those businesses. Heads of terms have been agreed for the lease over the office in Brentwood to be assigned to a new tenant with effect from mid October 2015. This office has a monthly running cost of approximately £30,000 and the lease expiry is 2024. A further announcement will be made once contracts have been exchanged. The Group is also left with the lease over the Stokenchurch property and the Board is continuing to explore its options for exiting that property.
We are pleased to report that Spencer Dredge has now taken up the role of Chief Financial Officer of the Company. Mark Braund will take on the role of Chief Executive with effect from 1 January 2016.
With the new management team in place, and some although not all, of the legacy issues having been resolved, the Board expects the Group to enter a more successful period of trading.
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For further information, please contact:
Coms plc
Frank Beechinor (Chairman) +44 (0) 207 149 6000
Charles Stanley Securities +44 (0) 207 149 6000
(Nominated Adviser and Broker)
Karri Vuori or Mark Taylor