Shareholders approve £1 sale of Conduco
SHAREHOLDERS of Plus-quoted Conduco plc have approved a proposal to sell of the company’s main business and assets to a management team led by founder Scott Fletcher for £1.
The deal effectively turns Conduco into a cash shell business, which has been renamed Ronaldsway Private Equity. It retains assets (mainly cash) worth around £467,500 which will be invested in new ventures.
Fletcher, meanwhile, will retain the Conduco name and attempt a restructuring of the Manchester-based business. It is a software firm that allows large companies and NHS Trusts to keep track of expensive equipment using embedded RFID chips.
The sale for £1 was agreed by shareholders at a general meeting yesterday. The company recently declared a loss of £32,770 on sales of £142,151 in the six months to September 30, 2010. It is owed £400,000 to ViaPost – a business in which it has a 19% stake – and has obligations to forward a further loan of £107,818. The board has written off the money it is owed, and Fletcher’s new company has agreed to meet ongoing contractual funding obligations to ViaPost.
