News blog

Nexus Management

BY: Andrew Hore |
POSTED: 06/01/2009 |

IT managed services provider Nexus Management has signed up 18 new franchise territories in the US for its Nerd Force technology support service.

Nerd Focus recently launched in Austria and a service centre has been opened in Vienna to provide help desk services across central Europe. There is already a franchise in Macedonia.

The first Nerd Force territory started trading in July 2008 and now are now a total of 30 territories in the US and 100 in Europe that have been signed up.

Nerd Force founder Ilir Sela recently swapped his loan note for 14.2m shares in Nexus.

Trading for the whole group was in line with expectations in the year to September 2008. Since then lower income from some clients has been offset by cost cutting.

Nexus still has not been paid all the money owed to it by retailer PD Financial. PD’s revenues have reached more than $500,000 a month but they are not growing as quickly as hoped. PD is renegotiating the $4.6m debt owed to Nexus. PD needs to do this or its potential growth will be held back.

Nexus will convert $2m of the debt into 457,059 preferred shares. The $2m loan note repayable in July 2009 will have $260,000 of interest added to it and the 8% interest rate will be increased to 15% if PD decides to extend the loan note until December 2009. There will also be a cash payment of $20,000.

The remaining debt will be swapped for a 10% stake in a new business to business company that PD is setting up. PD will have the option to buy back the stake in five years time for five times its annual operating profit in the fifth year.

Nexus will own 15.5% of PD when everything is sorted out. That should happen before the end of January.

A 0.14p a share rise in the shares took them to 1.03p each, valuing Nexus at £8.89m.

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