Vodafone rescues Outsourcery from liquidity woes

CLOUD computing firm Outsourcery, co-owned by the former Dragons’ Den star Piers Linney, has agreed a finance deal to give it much needed working capital.

Earlier this week the listed Manchester-based company had said it needed to find short term working capital as it posted another year of losses .

It has now reached agreement with existing lender Vodafone over the terms of a new conditional drawdown working capital facility.

The new facility with Vodafone, its principal secured lender, has been structured to provide additional funding so that the company can “realise its principal assets” in the immediate term.

The existing Vodafone loan remains in force and the new facility is subject to a number of terms and conditions, including the appointment of a proposed non-executive director.

Outsourcery’s announcement of a proposed asset realisation and the previously announced restructuring suggest a sale  could be imminent.

Last September technology entrepreneur Lawrence Jones, who owns cloud infrastructure business UKFast, invested more than £1m in taking a 10.5% stake in the loss-making  firm Outsourcery.

He is the third-largest shareholder in Outsourcery behinds its co-chief executives Piers Linney and Simon Newton.

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