Related Party Transaction

5 November 2020

CEPS PLC

 ("CEPS" or the "Company")

Related Party Transaction

Further to the announcement made on 2 June 2020 relating to a loan of £55,000 made by Davies Odell Limited ("DOL"; a subsidiary of the Company) to Andrew Gregory, Managing Director of DOL, on the sale of shares to him in DOL on 4 November 2013, plus associated legal costs of £15,000, this loan was due for repayment on 4 November 2020, but remains unpaid. From 5 November 2020 DOL and Andrew Gregory have entered into an extension agreement (the "Extension Agreement") that states the loan and the associated legal costs will remain in place, but may be recalled with immediate effect at any time at the discretion of DOL.

The Extension Agreement is deemed to be a Related Party Transaction pursuant to AIM Rule 13 as it has been entered into with a subsidiary company director. The directors of the Company who are considered independent for the purposes of this Extension Agreement (being the whole Board), having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, consider that the terms of the Extension Agreement are fair and reasonable insofar as the Company's shareholders are concerned.

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