27 Jan 2016 07:00
27 January 2016
Coms plc
("the Company")
Update on legacy issues
Coms plc (AIM:COMS) the leading provider of Infrastructure and Smart Buildings solutions announces it has made significant progress to resolve the majority of the remaining legacy issues associated with non-core and discontinued businesses.
The Company has embarked on a process to close its former Telecoms subsidiaries, which will involve the liquidation of all the relevant entities. This will result in a significant reduction in the number of legal entities within the Group structure, which in turn will reduce the administrative cost of running the Group. The business and assets of the Telecoms Services division were sold to Timico Limited in May 2015 and transitional services were provided to Timico Limited until the end of November 2015. Many of the companies have old creditor balances which management is unable to identify and as a result the process will involve creditors' voluntary winding-ups. Antony Batty & Co LLP has been appointed to carry out the liquidations.
The Company entered into a dispute resolution agreement with Dave Breith, the Company's former CEO, and his connected parties, which has now concluded all disputes between the parties.
Following a review of a number of different options, the Company sold the business and assets of the Media division to that division's management for a nominal consideration. As reported in the interim results, the division had generated an operating loss in the first half of the year. The division was regarded as non-core and accordingly the Board concluded that a sale to the division's management team was the best option. Coms Media Limited will continue in operation for the next few months to enable an orderly hand-over of the business and the efficient collection of the company's debts.
Mark Braund, CEO of Coms plc, commented:
"Since taking up my position as CEO, I have been impressed at the extent of the opportunities available to our core business, Redstone. The business has a sound pipeline and excellent Smart Building product offerings, which we will seek to develop. I am pleased that the Group has now resolved the vast majority of the legacy issues which the Board inherited. This will enable the management team to focus on developing our core business to generate a return for our shareholders and continue our current momentum towards an exciting and positive future for the Group."
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For further information, please contact:
Coms plc
Mark Braund (Chief Executive) +44 (0) 207 886 2976
Panmure Gordon & Co +44 (0) 207 886 2500
(Nominated Adviser and Broker)
Karri Vuori or Mark Taylor