News blog

Nexus Management

• BY: Andrew Hore |
• POSTED: 30/10/2012 |

Managed IT services provider Nexus Management is acquiring network and IT services provider Enables IT in return for shares that will make up nearly three-quarters of the enlarged share capital. 

The company will be renamed Enables IT Group. Enables (www.enablesit.co.uk) focuses on the health, education and corporate sectors and offers cloud services, networks and support.

A new hosted cloud service was introduced this month and this will help to build up recurring revenues. Enables hopes to take advantage of the US presence of Nexus to grow outside of the UK.

The most notable thing about the finances of Enables is that it is dominated by one customer. That customer accounted for 86% of the £1.96m in revenues generated in the six months to June 2012. The interim profit was £190,000, which was nearly as much as the 2011 full year profit. The main customer has never accounted for less than 56% of revenues.

Michael Walliss joined the Nexus board in July and he is the boss and majority shareholder in Enables. Walliss will own 47.9% of the enlarged share capital and become group chief executive. Marcus Yeoman is also a director of both companies. Marcus Hanke will step down from the board and Barney Battles will become non-executive chairman.

At 0.1p a share, down 0.015p, Nexus is currently valued at £1.24m. There will be a consolidation of 300 shares into one new share and there will be a capital reorganisation. There will be 11.8m new shares issued for Enables at a notional price of 36p each.

The deal should be completed on 26 November.

Former Nexus director Graham Stoddart-Stones has filed a claim for unfair dismissal and breach of contract. The potential claim could be worth £100,000.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2012_37.pdf