Trading Update & Notice to Exercise Insight Option

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

28 January 2021

Catena Group PLC

("Catena", the "Company" or the "Group")

Notice to exercise Insight Option and Trading Update

Catena Group Plc (AIM:CTNA) is pleased to announce it has provided notice of its intent to exercise the option it holds to increase its shareholding in Insight Capital Partners Ltd ("Insight"), the data science and machine learning solutions company, to 30.9 per cent. of Insight's fully diluted ordinary share capital ("Notice")(the "Option"). The Notice served today is an indication of the progress Catena and Insight are making toward Catena potentially acquiring the balance of issued share capital of Insight.

In addition to the Notice, Catena is pleased to provide a trading update for the 12 month period ended 31 December 2020 ("FY2020"), in accordance with the Company's announcement "Change of Accounting Reference date" released on 30 December 2020.

Background on the Option and Strategy

As previously announced, Catena has begun discussions with Insight with respect to acquiring the balance of its issued share capital. Having given Notice, Catena now has three months to complete the exercise of the Option and it is anticipated that exercise will form part of the transaction to acquire the remaining issued share capital of Insight.

The acquisition of Insight by Catena constitutes a reverse takeover under the AIM Rules and, as such, will be conditional on, amongst other things, the approval of Catena shareholders at a general meeting. The current temporary suspension of the Company's shares to trading on AIM will be lifted upon publication of an admission document by Catena in respect of the proposed reverse takeover of Insight together with a notice of general meeting (the "Admission Document").

Upon exercise of the Option, Catena will be interested in 31 per cent. of Insight's fully diluted ordinary share capital. This is slightly higher than the previously notified 30.2 per cent reflecting a reduced number of Insight employee options.

Trading update FY2020

Preliminary unaudited review of the Group's trading for FY2020 indicates that Catena sustained a loss in line with management's expectations. The Board are satisfied with this result given the financial impact of the Covid-19 pandemic on the Group's school sports coaching business. The Group achieved this outcome as a result of aggressive action to reduce costs and the school sports coaching business' utilisation of various Government Covid-19 schemes including a business interruption bank loan, the job retention scheme and VAT payment deferral.

Specifically, the Group is expected to report for FY2020:

· Revenue of £883,000 (2019: £1,683,000)

· Loss before interest and taxation of approximately £492,000 (2019: loss of £218,000)

· Cash as at 31 December 2020 of £1,032,000 (2019: £637,000)

The Group is scheduled to release its unaudited interim results for the 12 months ending 31 December 2020 by 31 March 2021, with audited results for the 15 months ending 31 March 2021 by 30 September 2021.

Matthew Farnum-Schneider, Chief Executive of Catena commented:

"We are pleased with the commercial development being made by the Insight management team as well as the collaborative progress with respect to Catena obtaining 100% ownership of Insight. We look forward to providing further updates on both subjects in due course."

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For further information, please visit www.catenagroup.co.uk or contact: