Outsourcery plans to raise £4.2m
CLOUD computing firm Outsourcery plans to raise £4.2m through a share placing.
The AIM-listed company said the placing of 3.75 million new ordinary shares at 112p each would fund the deployment of a CESG IL3-compliant platform, based on its existing O-Cloud.
This, it said, would allow it to access a new and significant opportunity for the company’s cloud services, which is being driven by UK Government policy and security compliance requirements.
“The directors believe that the UK Government represents a large market for IL3 compliant Microsoft services. Government ICT contracts with an annual contract value of £3.7bn will have expired by the end of 2016, rising to £6.6bn by 2020.
“Unique to the UK market, Outsourcery’s IL3 O-Cloud, a physically separated and accredited version of Outsourcery’s existing O-Cloud platform, will provide Infrastructure-as-a-Service, storage and archiving, a complete suite of Microsoft business applications including Exchange Server, SharePoint and Dynamics CRM,” it said in the stock market statement.
Subject to accreditation, Outsourcery is aiming for launch of the IL3 O-Cloud in the third quarter 2014 and will start marketing the IL3 O-Cloud in the first quarter.
The placing shares will represent 12.2% of the company’s existing issued share capital. The placing price represents a discount of 7.1p to the closing Price of 120p a share on December 10.
During the second half of 2013, monthly recurring revenue has progressed in line with market expectations and as at the end of October 2013 stood at £0.5m, the company said.
It added that revenue growth is expected to continue through 2014 as strategic partners such as Vodafone and Virgin Media Business develop their pipelines.
