IPT reveals plans to sell all UK businesses

IPT warned the market in August that it was exploring its options, including a sale, and that it was in talks with its bank about its funding requirements.

It said it has now decided it needs to dispose of all of its UK businesses and is currently in active discussions with potential buyers. It is still in talks with its bank "about its indebtedness position".

IPT also said it is now considering selling one of its profitable French subsidiaries, Directinet and NP6.

It is currently unable to boost its UK business with the cash generated by its French subsidiaries due to French dividend regulations and the earn-out arrangements it entered into when it acquired them.

IPT's woes began last year when it encountered technology problems at its UK operations, harming its financial performance.

It was buoyed by a takeover approach last August which drove its share price to a high of around 180p in November, but when it admitted in May that it was no longer in talks about a deal the price fell to around 24p.

In June it appointed turnaround specialist Nicholas Ward as executive chairman following the retirement of non-executive chairman Colin Lloyd.

This article was first published on brandrepublic.com