CloudCoCo Group PLC announced on Wednesday that its subsidiary, CloudCoCo Holdings Ltd, has struck a deal to sell the entire share capital of its IT managed services business, CloudCoCo Ltd. Shares in the London-based provider of managed IT services and communications solutions surged more than threefold to 0.44 pence each in London on Wednesday afternoon.
The proposed sale to Aspire Technology Solutions Ltd, an IT managed service and cybersecurity provider based in Gateshead, England, is set to fetch a gross cash consideration of up to GBP9.2 million, resulting in a net cash consideration of around GBP7.9 million. The proceeds from the sale will cover all of the group’s liabilities, including existing loan notes with MXC Guernsey Ltd, with approximately GBP950,000 in cash left for working capital.
The sale is contingent upon shareholder approval at the company’s general meeting on October 31. Chair Simon Duckworth expressed optimism about the move, stating, “The proposed sale of our IT managed services business marks a positive step for the group, enabling us to eliminate long-term debt and focus on expanding our value-added reseller operation, particularly in e-commerce, where we see significant opportunity.”
CloudCoCo also anticipates reporting full-year revenue for 2024 of at least GBP27 million, a 4.2% increase from last year’s GBP25.9 million. Duckworth emphasized that despite trading challenges in financial 2024, the strategic shift announced secures the group’s long-term future and sets a strong foundation for growth moving forward.
By Emily Parsons, Alliance News reporter
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