BGlobal to return cash to investors and delist
AIM-listed Lancashire company BGlobal is to return more than £11m to shareholders, delist and enter liquidation after the sale of its operating assets.
The company, which was originally focused on smart metering and energy savings, has been dogged by in-fighting over the last 12 months, with boardroom rows, resignations and attempted coups dominating the agenda.
The directors, who have recently sold the largest remaining subsidiary Utiligroup, to Manchester private equity firm NorthEdge Capital, have now decided to call time on the business.
It is recommending that shareholders back its plans to return £11.7m in cash, and for the shares to be delisted in September. The directors intend to withold £4.7m from the payout to cover contingent liabilities relating to the sale of the subsidiaries.
Bglobal said: “This sum is to cover contingent liabilities in the board’s assessment of a realistic worst case scenario and the anticipated costs of maintaining the company in operation and ultimately winding it up.
“John Grant and Tim Jackson-Smith (the remaining directors) intend to appoint liquidators to formally wind up the Company as soon as practicable following the determination or settlement of all material contingent liabilities.”
Separately BGlobal published its full-year results which showed a loss before tax from continuing operations of £1.02m for the year to the end of March – up from £630,000 last year.
Revenues from discontinued operations increased to £12.8m from £11.6m last year.
Chairman John Grant said: “The current board’s focus has always been on enhancing shareholder value and the disposal of B Global Metering and of Utiligroup are the culmination of the hard work that has been carried out since I was appointed by shareholders in August last year.
“It has clearly not been a quiet year for the Group and I would like to thank all the staff, who united to work with an excellent team of advisors, to deliver our year end results and these two significant transactions. I personally am extremely grateful for the support of shareholders and my colleagues on the board during this period of change and uncertainty.”
