CloudCoCo Group is expecting to complete a sale of its MSP business by the end of the month, and has announced it will sell to Aspire for £9.2m.
Following a reorganisation of the firm, the group indicated to shareholders that it was selling CloudCoCo Limited to meet some of its loan commitments.
Proceeds from the Proposed Sale will discharge all liabilities of the Group, including the MXC Loan Notes, and leave the Company with approximately £950,000 of cash for working capital.
Simon Duckworth, Non-Executive Chairman, outlined the position the company was in: “The company’s most recent financial year ended on 30th September 2024 and the directors will be seeking to publish audited financial statements for that year as soon as possible in the first quarter of 2025. Unaudited financial statements are expected to show revenues for the year of at least £27m and net debt of approximately £6.9m,” he said.
Duckworth said the board had agreed the Aspire deal was the best option to secure the long-term future of the business and was the most certain way to guarantee it would be able to repay the loan.
Sharing plans for its future following the sale, the company will continue to grow the remaining business. After the Aspire deal is completed, it will continue to be an IT product reseller via its business-to-business operation in Sheffield.
"The proposed sale of our IT managed services business marks a positive step for the Group, enabling us to eliminate long-term debt and focus on expanding our value-added reseller operation, particularly in e-commerce, where we see significant opportunity.
“Alongside this, we are in advanced discussions for the sale of our Connect business to further strengthen our financial position and streamline our proposition.”