Cloudbuy PLC Sale of Company Formations Business (2456U)

TIDMCBUY

RNS Number : 2456U

Cloudbuy PLC

28 March 2019

cloudBuy plc

("cloudBuy" or the "Company")

Sale of Company Formations Business

cloudBuy, the global provider of cloud-based eCommerce marketplaces and B2B buyer and supplier solutions, announces that it has signed a definitive agreement for the sale of its Company Formations business for cash proceeds of GBP279,090.

The transaction represents the sale of the assets and liabilities of cloudBuy's Company Formations business to the Stanley Davis Group. The transaction is expected to complete on 29 March 2019 and the cash proceeds will be received on this date. The proceeds, which are subject to an adjustment for receivables on the date of completion, will be applied to fund working capital.

The business being sold is a UK company formations agent with ancillary services including registered office.

The business had revenue of GBP317,653 in 2018, a reduction of GBP59,165 from 2017. It made an estimated operating profit (before allocation of general overheads) of GBP68,000 in 2018. The net book value of the assets being sold are approximately GBP2,090.

As a consequence of this sale, the Company will not require any additional funding to the GBP500,000 provided by Roberto Sella, announced on the 20 March 2018. The Company will use the proceeds for general working capital purposes.

The Transaction will now allow the Company to concentrate on its strategy of focusing on existing ecommerce customers and growing the PHBChoices business.

Ronald Duncan Executive Chairman and CIO commented

"We founded this business in 2002 and were a pioneer in the sale of on-line company formations. However, the market has become more challenging since Companies House entered the market selling directly as evidenced by the decline in revenues. We are delighted that we have found a strong buyer for our business which will enable customers to continue to receive an outstanding service as part of a larger organisation."

For further information, please contact:

 
  cloudBuy plc                                       Tel: [phone] 
  David Gibbon, CFO 
  Arden Partners plc - Nomad and Broker              Tel: [phone] 
  Paul Shackleton/ Daniel Gee-Summons - Corporate 
   Finance 
  Simon Johnson - Corporate Broking 
 

About cloudBuy plc

cloudBuy, (AIM: CBUY), provides cloud solutions for buyers and sellers - and brings them together to trade securely and ethically via an increasing number of public eMarketplaces and private purchasing portals around the world, powered by cloudBuy technology. cloudBuy solutions for buyers help B2B purchasers understand and control their spend, to reduce costs and increase value. Our cloudSell solutions enable sellers of all sizes, from startups to corporates, reach new customers and grow their business.

cloudBuy's technology platform powers web sites, public marketplaces and private purchasing portals that enable all types of online interactions and relationships including, citizen and business to government; consumer to business; and business to business.

For more information, visit: www.cloudbuy.com .

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March 28, 2019 03:01 ET (07:01 GMT)