TIDMADVT
RNS Number : 6296V
Advancedadvt Limited
05 December 2023
5 December 2023
AdvancedAdvT Limited
Proposed cancellation of the Company's Ordinary Shares from the
Official List and proposed admission to trading on AIM
AdvancedAdvT Limited (LSE: ADVT, the "Company") intends to
request the Financial Conduct Authority ("FCA") to cancel the
standard listing of the ordinary shares of the Company (the
"Shares") on the Official List and to request the London Stock
Exchange to cancel the admission to trading of the Shares on the
main market (the "Cancellation").
The Company will apply for the admission of the Shares to
trading on the AIM market ("AIM") of the London Stock Exchange
("Admission"), such that Cancellation and Admission will take place
simultaneously.
Vin Murria , AdvancedAdvT's Executive Chairperson, said
"We are switching our listing to AIM and expect to have our
shares trading again on 10 January 2024. AIM provides a more
suitable regulatory environment for a business of our size and
structure as well as offering flexibility with regard to corporate
transactions, and will provide access to a broader pool of
institutional and other investors.
"The management's experience, expertise and proven track record,
together with GBP95m of cash and assets plus supportive
shareholders, position us extremely well to execute on our growth
strategy in a rapidly growing and evolving AI and digitally led
landscape.
"We recently acquired four businesses with notably strong
recurring revenues and have created an initial platform on which we
can rapidly scale, innovate and build both organically and
inorganically.
"Our two platforms, business/data and compliance solutions and
human capital management platforms, provide us with a strong and
solid foundation to capitalise on the anticipated rapid market
growth and increasing AI, digital transformation, data analytics
and business intelligence requirements across these sectors, whilst
also expanding our presence in adjacent markets, geographies and
digital sectors.
"Forecasts indicate that the business solutions, human capital
management and digital transformation markets are anticipated to
experience double-digit growth rates extending through 2030."
Core specialisms
On 31 July 2023, the Company completed the acquisition of five
software businesses from Capita plc for a combined enterprise value
of approximately GBP33 million in cash.
In the year ended 31 December 2022, these businesses generated a
total revenue of approximately GBP35 million, with approximately 74
per cent. of the revenue being recurring or from
Software-as-a-Service (SaaS).
Four of these businesses operate across two fundamental business
transformational areas: business/data and compliance, and human
capital management. Through these core specialisms, the Company
delivers innovative software solutions and a platform that enables
businesses and organisations to succeed in today's dynamic
landscape whilst providing an enabler for, Artificial Intelligence
("AI"), digital transformation, data analytics and business
intelligence.
-- Business Solutions ( Integrated Business Software and
Solutions Limited ): provision of financial management software
solutions and services. Innovative software solutions allows
organisations to achieve their financial and e-Business strategies
by driving transformational changes.
Its solutions can be hosted in both the private and public cloud
and are trusted by more than 150 public, health and private
organisations in the UK and Ireland. The use of AI, digital
transformation, data analytics and business intelligence software
are expected to be highly valuable to these markets.
-- Data&Compliance (CHKS Limited): one of the leading
providers of AI driven healthcare intelligence compliance and
benchmarking software to address the governance, risk and
compliance needs of its healthcare customers.
Its UK based tech-enabled solutions of accreditation,
benchmarking and coding services play a role in transforming
healthcare services, knowledge sharing and best practice to the
healthcare industry globally.
-- Human Capital Management ( R etain International Software
Limited ): an industry leading global AI centric resource planning
and talent management software and service provider. Its solutions
integrate with leading enterprise resource planning systems and are
trusted by some of the largest global consultancies to deliver
effective management and allocation of resources; optimise
utilisation and productivity, and enable efficient cost management,
financial and staff planning tasks.
-- Human Capital Management ( Workforce Management Software
Limited ): a workforce management software provider, with
well-established UK presence and embedded relationships across 300+
clients. Its ability to handle highly complex payroll calculations
delivering a gross number through it comprehensive time and
attendance and access control solutions provide real-time employee
tracking with tangible efficiency benefits.
On 21 November 2023, the Company entered into an agreement for
the sale of Synaptic Software Ltd ("Synaptic"), one of the five
businesses acquired from Capita plc, to Fintel IQ Limited (the
"Disposal") in order to enable the business to have a more
strategically aligned owner. Synaptic provides a technology
solution platform with research and compliance tools for the retail
financial sector. The Disposal and receipt of the net GBP3.5
million cash consideration is conditional upon, inter alia, the
approval of the change of ownership by the FCA.
Strategy
The Group's strategy is centred around backing sectors
characterised by long term AI, digital transformation, data
analytics and business intelligence trends, that are in early
stages of adoption and set to transform the workplace for
professionals for the next few decades.
Embracing a long-term perspective, the aim is to build a lasting
and thriving business. This thinking shapes how investment is
deployed on both M&A and within the platform businesses, in
order to develop relationships with clients and partners and with a
strategy centred around business and digital transformation and
continuous improvement.
This strategy revolves around evaluating high-quality businesses
in the pipeline, based on a set of key characteristics. These
characteristics align with the management team's vision and will
enable businesses to consistently generate long-term value. The
Company seeks businesses with:
-- high recurring revenue streams and good forward visibility;
-- sticky customer retention;
-- mission critical products and services;
-- sectors with high barriers to entry;
-- opportunities for both organic and inorganic growth;
-- strong cash generation; and
-- highly fragmented industries with opportunities for consolidation.
The Directors believe that the acquisitions embody these
characteristics and offer opportunities to expand the product
offerings to deliver against their existing and future client needs
and an opportunity to build on digitisation trends.
The Company will continue in its pursuit of opportunities where
a blend of management expertise, enhanced operational performance,
increased investment capital, and a targeted approach to
acquisitions can enable growth and value creation for stakeholders.
Growth opportunities may manifest within the existing acquired
businesses or potential target businesses and their core markets,
new territories and adjacent sectors.
Financing resources
As of 30 November 2023, the Company has approximately GBP78
million of cash available to fund further acquisitions, investment
and working capital. The Company will receive additional cash
proceeds following completion of the Disposal, conditional upon,
inter alia, the approval of the change of ownership by the FCA.
Management's track record
The Directors have significant experience executing transactions
using listed acquisition vehicles on the London Stock Exchange and
have successfully completed a vast array of M&A transactions on
and off London's capital markets. The Company plans to strengthen
the Board at the time of the Admission.
The management team boasts substantial experience in the
software and services sector, having invested in and operated a
range of high-performing businesses. The team have successfully
driven operational excellence within these enterprises, leading to
consistent organic growth. Moreover, it has a proven track record
of targeted and accretive mergers and acquisitions in the software
sector.
Market opportunity
The use of AI, digital transformation, data analytics and
business intelligence.
Across all sectors, businesses have increasingly embraced or are
embracing AI and digitalisation to optimise their insights,
processes, operations, and engagement. Implementing these
technologies and developing a digital transformation strategy is
vital for businesses pursuing growth, efficiency, and long-term
success. Sectors and businesses with the highest level of AI and
digitalisation tools have significant opportunity for productivity
growth.
While the potential of digital transformation and use of AI and
digitalisation tools is now recognised, the adoption of new AI and
digital strategies by businesses and consumers was, until recently,
somewhat limited by various barriers, including companies'
willingness to invest in and embrace these technologies. However,
the global restrictions imposed by the Covid-19 pandemic have
shattered these barriers and compelled businesses to become more
agile, resulting in a remarkable acceleration of digital
transformation.
Despite cost-cutting measures implemented due to the pandemic,
organisations have increased their spending on digital
transformation as they rapidly adapt their business models.
Harnessing technology has led to the reshaping of multiple aspects
of business operations, from internal processes and workflows to
customer interactions and business models.
The Directors believe that the current macroeconomic environment
presents a substantial investment opportunity in companies
well-positioned to harness the structural changes arising from this
unprecedented acceleration of AI and digitalisation.
These structural changes have profoundly impacted the way people
live, work, and consume, as well as how businesses operate, engage
with customers, and conduct sales. Consequently, businesses
embracing digital transformation, offering AI and digital
solutions, software, and services that enable and support its
strategy are expected to experience sustained demand for their
products.
Background
The Company was formed on 31 July 2020 for the purpose of
effecting a merger, share exchange, asset acquisition, share or
debt purchase, reorganisation or similar business combination with
one or more businesses. The Company was admitted to trading on the
standard listing segment of the Official List of the London Stock
Exchange on 4 December 2020.
The Company's objective is to generate attractive long-term
returns for shareholders and to enhance value by supporting
sustainable organic growth, acquisitions and other performance
improvements within the acquired companies.
On 5 January 2022, the Company made an investment in M&C
Saatchi in contemplation of a proposed merger, purchasing 12
million ordinary shares in M&C Saatchi for a price of GBP2 per
share. The executive chairperson of the Company, Vin Murria OBE,
owned 15,237,985 ordinary shares in M&C Saatchi and was at the
time a non-executive director on its board. This resulted in the
combined holdings of Vin Murria OBE and the Company representing
approximately 22.3 per cent. of the issued share capital of M&C
Saatchi. On 17 May 2022, the Company announced its firm intention
to make an offer for M&C Saatchi by way of a contractual
offer.
On 14 June 2022, the Company published the final offer document
in respect of the final offer for the issued and to be issued share
capital of M&C Saatchi not already owned by the Company. After
a prolonged process, the Company announced on 30 September 2022
that it had not received sufficient acceptances and the final offer
lapsed.
Cancellation and Admission
Pursuant to Listing Rule 5.2.8, the Company is required to give
at least 20 business days' notice of the intended Cancellation.
Therefore, it is intended that the Cancellation will become
effective from 8.00 a.m. (London time) on Wednesday 10 January
2024, such that the last day of trading of the Shares (with ISIN
VGG0103J1075) on the London Stock Exchange would be Tuesday 9
January 2024.
Admission is expected to take place, and dealings in Shares are
expected to commence on AIM, at 8.00 a.m. on Wednesday 10 January
2024.
Any change to the times and dates mentioned above will be
notified to shareholders by an announcement through a Regulatory
Information Service.
An AIM Admission Document will be available on the Company's
website at www.advancedadvt.com shortly before Admission.
Singer Capital Markets Advisory LLP will be appointed Nominated
Adviser to the Company upon Admission.
Enquiries:
AdvancedAdvT Limited
Vin Murria c/o Meare Consulting
Singer Capital Markets (Broker) Tel: 020 7496 3000
Philip Davies / Asha Chotai /
Sam Butcher
KK Advisory (Investor Relations) Tel: 020 7039 1901
Kam Bansil
Meare Consulting
Adrian Duffield Tel: 07990 858548
Further information on the Company can be found on its website
at www.advancedadvt.com . Neither the content of the Company's
website, nor the content on any website accessible from hyperlinks
on its website or any other website, is incorporated into, or forms
part of, this announcement nor, unless previously published by
means of a recognised information service, should any such content
be relied upon in reaching a decision as to whether or not to
acquire, continue to hold, or dispose of, securities in the
Company.
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END
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