15th Sep 2008 07:00
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Press Release |
15 September 2008 |
Interactive Prospect Targeting Holdings Plc
("IPT" or "the Group")
Update on Strategic Review
Further to the Company's announcement on 11 August 2008, the Board of Interactive Prospect Targeting Holdings Plc (AIM:IPH) provides the following update to shareholders.
Following the appointment of Nicholas Ward as Executive Chairman on 19 June 2008, PricewaterhouseCoopers ("PwC") and Berwin Leighton Paisner (the "advisers") have been appointed to assist in the strategic and operational review of the Group. In addition, the Board has appointed two experienced turnaround professionals to assist on a consultancy basis both in the strategic review and in the ongoing operational management of the Group. Nicholas Ward has assumed Group level responsibility for strategic management with one of the consultants assisting in the financial management of the Group.
On 11 August 2008, the Board said it believed that the Group's UK operations were trading significantly below management's budgets and that it was exploring all options for the UK business, including the possible sale of some of its divisions. This shortfall in the UK trading performance came to light as a result of the financial review of the business being undertaken with the help of PwC and one of the turnaround consultants and related to periods prior to June 2008.
Greater clarity on the operational performance has emerged since 11 August 2008, and the Board has now concluded that it is in the best interests of the Group to dispose of all of the UK businesses. The Board is in active discussions with potential buyers for various parts of the UK business and a further announcement will be made in due course.
Furthermore due to French dividend regulations and the earnout arrangements entered into in connection with the acquisition of the Group's French subsidiaries, Directinet and NP6, the Group is currently precluded from remitting any of the cash resources within these profitable and cash generative businesses for the UK businesses. The new Group management team is actively working to secure access to these funds as quickly as possible and to put in place arrangements for the long term management of these subsidiaries. The Board is also now considering the disposal of one of its French subsidiaries.
In addition the Group is currently in active discussions with its bank regarding its indebtedness position. The Board is also considering all other options to enable the Group to continue to operate as a going concern. The Board will update shareholders on the progress of the Group on these matters in due course.
-Ends-
For further information:
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IPT Holdings plc |
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Nicholas Ward, Executive Chairman |
Tel: +44 (0) 20 7932 4912 |
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Canaccord Adams |
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Mark Williams / Eli Colby, Corporate Finance |
Tel: +44 (0) 20 7050 6500 |
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www.canaccordadams.com |
Media enquiries:
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Abchurch |
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Charlie Jack / Jack Ballantyne |
Tel: +44 (0) 20 7398 7714 |
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www.abchurch-group.com |
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Stratmin Global Resources