Company searches for buyer as it warns shareholders they are at risk of getting “no, or limited value” from investment
Cloud service provider Outsourcery’s future is in doubt after its shares were suspended last week.
The Manchester-based company, which is co-owned by ex-Dragons Den star Piers Linney (pictured), could enter administration if a buyer or new investor isn’t found.
Outsourcery has informed shareholders they are at risk of getting “no, or limited value” from their investment.
As the process to find a buyer continues, its board has announced that it was no longer able to present audited financial results for the year ending December 31, 2015 by June 30.
Last July, the company’s principal secured lender Vodafone loaned Outsourcery £4 million over a 48 month period ending June 2019.
In April, Outsourcery announced it had reached an agreement with the mobile operator on new terms for a funding facility.
In a statement, it said: “Pursuant to the conditions of the working capital facility, Outsourcery has progressed with the previously announced restructuring, including discussions about the disposal of business assets in the immediate term.
“Outsourcery has received a number of initial offers for its assets, though the potential proceeds from the current proposals would potentially leave no or limited value to equity shareholders. The Board continues to carefully evaluate approaches for assets as well as a number of further options to strengthen the immediate and long-term financial position of the Company.
“While discussions with third parties are ongoing, they have had no material adverse impact on current business activity, with Outsourcery securing new direct customer contracts and continuing with further product development.
“While the process continues, the Board has concluded that it is no longer possible to present audited financial results for the year ended 31 December 2015 by 30 June 2016.
“As such the Company has requested a temporary suspension of the under-mentioned securities from trading on AIM with immediate effect, pending publication of its audited financial results and the appropriate notification being made in accordance with the AIM Rules.”