BGBL Bglobal

TIDMBGBL TIDMEAS

RNS Number : 1888F

Bglobal PLC

22 April 2014

22 April 2014

Bglobal plc ('Bglobal', the 'Group' or the 'Company')

Disposal of B Global Metering Limited

Bglobal plc (AIM:BGBL), the leading provider of smart energy solutions and services to the UK energy market, is pleased to announced it has reached an agreement with Energy Assets Group plc to dispose of the entire issued ordinary share capital of its metering business, B Global Metering Limited ('BGM'), for a cash consideration of GBP2.3m, which includes payment of GBP0.2m for the cash balance of BGM on completion. The disposal is made on a debt free basis with a working capital adjustment mechanism in place post completion. The sale and purchase agreement contains warranties and indemnities that are customary for a transaction of this nature.

Following the initial findings of the KPMG strategic review announced in November 2013, Bglobal has been in discussions with a number of parties with regard to the disposal of its metering business. In addition, a number of operational steps have been taken to improve the current performance of BGM, including the removal of approximately GBP1m of annualised costs.

BGM had gross assets of GBP4.0m at 31 March 2013. The business generated revenues of GBP7.4m, over half of which are recurring revenues, and incurred a loss before tax of GBP1.5m (after exceptional asset impairment and intra-group management charges of GBP0.7m) for the year ended 31 March 2013.

Following a further review of the Group, the decision has been taken to close Bsmart Energy Solutions Limited and Nutech Training Limited as both businesses have performed poorly in the 6 months to 31 March 2014 and, with the disposal of BGM, are no longer core to the strategic direction that the Group wishes to pursue. Attempts were made to dispose of these businesses but discussions in this regard have now come to an end.

The proceeds from the sale of BGM will be used to repay the convertible loan note issued to Synergy Capital Limited, to pay expenses incurred in connection with the sale and the closure of Bsmart and Nutech and to provide working capital for the Group.

The Group's remaining business, Utiligroup, has performed well throughout the financial year ended 31 March 2014 and has continued to build a strong recurring revenue stream that provides a stable platform for further growth in the coming 12 months.

Tim Jackson Smith, Chief Executive of Bglobal plc, commented:

"In line with our strategic plan to deliver value for shareholders, I am pleased to announce the sale of B Global Metering Limited to Energy Assets Group plc. I would like to thank all of the staff at B Global Metering for their hard work and commitment, particularly over the last 6 months, and am confident that they and the business will have a bright future as part of the Energy Assets Group."

- Ends-

For further information, please contact:

 
John Grant, Chairman  Mark Taylor         Rebecca Sanders-Hewett 
 Tim Jackson-Smith,    Charles Stanley     Dwight Burden 
 CEO                   Securities          David Ison 
 Bglobal plc           Nominated Adviser   Redleaf Polhill 
 Tel: 01254 819        and Broker          Tel: 020 7382 
 600                   Tel: 020 7149       4730 
                       6000 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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