Getech Group boosted by contract wins
A look at the major movers on the London market on Thursday
Getech Group PLC (LON:GTC) has gained ground after positive contract news and an increasing presence in green energy.
The company, which specialises in providing data, software and analytic products to the energy industry, said it had renewed software licences with existing customers with a combined value of around £375,000.
It has also won contracts for data and services with new and existing customers worth a total of £350,000, including work in new areas for the company in the petroleum and geothermal sectors.
The contracts should add around £537,000 to this year s revenues, meaning it continues to trade in line with current market expectations.
Real Good Food in £43m sale of Brighter Foods to THG Real Good Food (RGF) has agreed to sell its snack bar business Brighter Foods to THG for £43m, allowing it to focus on its cake decoration subsidiaries Renshaw and Rainbow Dust Colours.
RGF, through its subsidiary NBF, has an 84% stake in the issued share capital of Brighter Foods, which operates a factory at the Pendre Industrial Estate, Tywyn, in Wales. The balance was owned by Brighter Foods s managers. RGF itself would therefore receive cash proceeds of £35.6m from the deal.
The net assets being disposed of amount to £17.3m, resulting in a profit on disposal of an estimated £20.4m. Brighter Foods claims to have the capacity to make a million bars a day for brand partners across the globe in the slimming, sport, organic, free-from and other markets.
Disposal of Brighter Foods Limited, Notice of General Meeting and Trading Update Real Good Food plc, (AIM: RGD) the diversified food business, announces that it and the Managers have conditionally agreed to sell the entire issued share capital of Brighter Foods Limited for an aggregate cash consideration of £43.0 million on a cash free/debt free basis to THG plc ( THG ). RGF, through its subsidiary NBF, has an interest in 84.334 per cent. of the issued share capital of Brighter Foods Limited with the balance owned by Brighter s Managers. The Group will therefore receive cash proceeds of £35.64 million. The consideration due to the Sellers is subject to customary adjustments for (amongst other things) the actual working capital at Completion against an agreed target level. The net assets being disposed of amount to £17.3 million, resulting in a profit on disposal of approximately £20.4 million.
£35.6m
As a result, RGF’s total net debt is expected to reduce from £47.6m (as at 31 March 2021) to £21.2m. It added that the board will be undertaking a ‘thorough’ review of its working capital needs in the coming weeks, which may result in further payments to loan note holders and the pension scheme to further de-risk the balance sheet. The transaction is expected to complete on 11 May 2021.
“We are very pleased with the disposal which crystallises substantial value for the group and enables us to halve our debt burden at a stroke, whilst materially improve the funding of the pension scheme,” said executive chairman Mike Holt.
The Hut Group strengthens snacking capability with £43m Brighter Foods deal thegrocer.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thegrocer.co.uk Daily Mail and Mail on Sunday newspapers.