Sale of Calyx Managed Services

23 February 2015

BETTER CAPITAL PCC LIMITED 2009 Cell

The Directors of Better Capital PCC Limited (the "Company") are pleased to announce that they have been advised by the General Partner (the "GP") of BECAP Fund LP ("Fund I") of the sale of Calyx Managed Services Limited ("CMS"), a Fund I portfolio company, to MXC Capital Limited. CMS is a provider of managed ICT services and was a constituent of the Calyx Group acquired by Fund I in September 2010. Subsequently the Calyx Group was split into two distinct businesses; CMS and m-hance Group Limited ("m-hance").

In considering the position of the Calyx Group and the likely opportunities for value creation from the two constituent parts, a decision was made to retain m-hance and pursue a sale of the CMS business.  CMS was considered sub-scale to other operators in the sector and it was not felt appropriate to apply further capital in seeking acquisitions to increase its critical mass. As a result a decision was made to pursue a disposal of CMS, and in conjunction to plan a restructure of the business should any offers received not meet expectations. 

Following a competitive auction process involving a number of interested parties, CMS was sold for an enterprise value of £9.0 million which, after deducting sale costs and management incentives, results in £7.8 million being returned to Fund I. The CMS element of the Calyx Group valuation was £4.9 million in the most recent valuation of Fund I. The net sale proceeds therefore result in a £2.9 million (59%) excess to that valuation. The Directors wish the CMS team every success in the future under their new ownership.

m-hance did not form part of the CMS sale and remains in the Fund I portfolio, and the Directors are advised by the GP that m-hance continues to trade in accordance with expectations.

Fairline Boats Limited ("Fairline") continues to face difficult market conditions and 2014 was a challenging year. Notwithstanding this the company's order book, entering 2015, is the strongest for the past two years. Accordingly, the GP has approved a further commitment of £4.0 million to Fairline to fund cash flow needs, ongoing restructuring costs and development of new products. The process of restructuring continues and Fairline has successfully moved to a 'build to order' model whereby only boats with retail orders and deposits are built, a move considered to be the first of any UK luxury boat builder.

Having considered the level of cash available within Fund I with the GP, the Directors of the Company have concluded that it is not in a position to make a further distribution to shareholders at this time but will continue to monitor the position closely.

Enquiries:

Better Capital PCC Limited +44 (0)1481 716 000

Jon Moulton (Director)

Better Capital LLP +44 (0)20 7440 0840

Mark Aldridge (CEO)

Powerscourt (PR enquiries)

Justin Griffiths 07809 525747