NXS Nexus Man

 
TIDMNXS 
 
11 July 2012 
 
                             Nexus Management Plc 
 
                          ("Nexus" or "the Company") 
 
                 Disposal of Resilience Technology Corporation 
 
Further to the announcement made on 27 January 2012, Nexus Management Plc, the 
AIM quoted provider of specialist IT Managed Services, is pleased to announce 
that it has today sold Resilience Technology Corporation ("Resilience"), a 
Delaware corporation and wholly owned subsidiary, to RTC Management LLC 
("RTC"), a Delaware Limited Liability Company set up by the management team of 
Resilience for the purposes of the transaction ("the Disposal"). The 
consideration for the sale is GBP500,000 and in addition RTC has assumed third 
party net liabilities totalling approximately GBP850,000. 
 
Reasons for the Disposal 
 
As announced previously the Company commenced a strategic review on 1 November 
2011 in an attempt to maximise value for shareholders. The sale of Resilience 
has been explored as part of this review process and after investigating a 
number of potential options it has been decided that a management buyout by the 
current management team of Resilience offered the best value. 
 
As highlighted in the Chairman's Statement in the final results for the year 
ended 30 September 2011, the Board has recognised the "need for change" to 
drive further cost cutting measures and maximise the value of historic 
investment in people and operations and we believe that the sale of Resilience 
matches with these ambitions. 
 
The Disposal will allow the Board to focus on the Company's US and UK IT 
managed services businesses. 
 
Further details about the Disposal 
 
Resilience recorded a loss before taxation of GBP290,000 in the year ended 30 
September 2011 and its net liabilities at that date were approximately GBP1.7 
million. Included in the net liabilities at that date was an inter-company 
creditor balance of approximately GBP2 million which will be written off as part 
of the transaction. 
 
The Company anticipates that the profit/loss on disposal, which will be 
recorded in the accounts for the year ended 30 September 2012, is expected to 
be broadly breakeven. 
 
The proceeds from the Disposal will be used to reduce the indebtedness of the 
Company and for working capital generally. 
 
Related Party Transaction 
 
Sean Scott, the chief executive officer of Resilience, is a director and 
shareholder of RTC, the result of which is the Disposal is classified as a 
Related Party Transaction under the AIM Rules. 
 
The Independent Directors, having consulted with the Company's Nominated 
Adviser, Merchant Securities Limited, consider the terms of the Disposal to be 
fair and reasonable insofar as the Company's shareholders are concerned. In 
advising the Independent Directors, Merchant Securities Limited has taken into 
account the commercial judgement of the Independent Directors. 
 
M Barney Battles, Executive Chairman of Nexus Management commented: 
 
"During the first half tight cost control on our part mitigated the effects of 
lower revenues at Resilience. However, we feel that a sale of the business to 
its current management leaves us in a stronger position to drive the remaining 
trading operations forwards. 
 
"Our core managed services businesses continue to perform well. We are focused 
on developing these businesses and exploring further opportunities to generate 
shareholder value." 
 
FURTHER ENQUIRIES 
 
Nexus Management Plc 
 
M Barney Battles Tel: +44 (0)778 976 6242 
 
Merchant Securities Ltd (Nomad) 
 
Simon Clements/David Worlidge Tel: +44 (0)20 7628 2200 
 
Bishopsgate Communications Ltd 
 
Nick Rome/Sam Allen Tel: +44 (0)20 7562 3350 
 
Notes to Editors 
 
Nexus is an IT Managed Services Provider specialising in reducing the cost and 
complexity of IT for companies. Nexus has been a pioneer in cloud computing and 
virtualization with many customers benefiting from these modern disciplines. 
Nexus operates in two key markets: Europe and the US, where it can offer 
customers 24 hour help desk support, Remote Server Management, Wide Area 
Network Management, equipment monitoring, Disaster Recovery, Data Storage and 
Desktop Support, and through its Resilience Technology Corporation subsidiary 
(www.resilience.com), bullet-proof network security. 
 
Resilience has since 1985 delivered network security appliances with the most 
advanced operating system. RES/OS boasts such features as open systems 
flexibility and life cycle management innovations for mission-critical 
applications. Resilience's high performance solutions are designed for network 
environments where availability is essential and security must not be 
compromised. 
 
Nexus is incorporated in the United Kingdom and its shares are quoted on the 
London Stock Exchange (AIM). 
 
http://www.nexusmanagementplc.com/ 
 
 
 
END 
 

Nexus Management (LSE:NXS)
Historical Stock Chart
From Apr 2024 to May 2024

Nexus Management (LSE:NXS)
Historical Stock Chart
From May 2023 to May 2024