Adventis role ends with sale of remaining businesses

AIM listed marketing services company, Adventis Group Plc, has gone into administration following the announcement that it had agreed terms for the sale of its two remaining businesses.

Nick Winks and Andy Pearson had been appointed Chairman and Finance Director respectively in Spring 2011 as a result of bank and shareholder concern at the group’s deteriorating performance. The loss making Health division was closed in September 2011 and two businesses forming the Media division were sold to trade buyers in early 2012 allowing the Group to completely focus on its growing and profitable Technology division. Adventis had sought an equity fundraising to deal with legacy debt and earnout liabilities but that had proved impossible: as a result in May 2012 the Group announced plans to sell its remaining asset, the Technology division.

In June 2012 RCapital Partners acquired the banks debt position together with its security rights for an undisclosed sum and terms were agreed in July 2012 for the sale of the two Technology division businesses to newly formed vehicles backed by RCapital Partners. Those transactions were concluded immediately after the parent entered administration.

Nick Winks commented “This was a reasonably complex services business turnaround which had significant legacy problems, including high debt and earnout liabilities. Whilst we’re disappointed that ultimately we could not restore equity value for shareholders, most other stakeholders have seen a satisfactory ending: almost all jobs were safeguarded and the businesses have successfully been transferred to new owners. At the same time bank debt and trade suppliers have been largely repaid”.

Comments are closed.