| Intellego issues its latest market update as follows: the year to 31 March 2010 finished with sales of £2.0 million and in line with the trading update of 20 January 2010 sales recovered in the second half.
The business has seen significant changes over the past six months with a new team of executive directors who have made extensive changes to all aspects of the operations. These include the creation and introduction of new products incorporating Intellego's IP and the disposal of the EKP distribution business announced on 28 April 2010.
A plan to significantly reduce overheads has been put into effect and should in a full year achieve net savings of c. £300,000 pa.
Over the past two years the main operating company, Intellego Group Limited, has accumulated a backlog of liabilities, including loans, totalling c. £1 million. After taking professional advice the directors have decided to implement a company voluntary arrangement for Intellego Group Limited. Antony Batty & Company LLP has been appointed as nominee and will circularise creditors today. The effect of the company voluntary arrangement will be to formalise arrangements to satisfy those liabilities for c. £400,000 payable over five years, as this offers the best return for creditors and shareholders.
The directors believe that having taken these steps the Company should be able to trade profitably for the future.
Angus Forrest commented "The business has undergone transformational change over the past six months and is set to grow organically with improving financial performance. As evidence of the opportunity we are in contract negotiations with several multinational organisations. As we gain financial strength we plan to make focussed acquisitions to grow our capabilities in our chosen market verticals of healthcare, retail and financial services."
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