Business
Pulsar update
Pulsar update.
About this update from Pulsar Group Plc
[{"type":"text","content":"\n \nRNS Number : 1294C Access Intelligence PLC 06 February 2020 \n\nThis announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (\"MAR\"). Upon the publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.\n \n \n \n6th February 2020 \nACCESS INTELLIGENCE PLC \nCompletion of Pulsar Accounting Review \nFurther to the announcement on 10 December 2019, the Board of Access Intelligence provides the following update following the completion of the review by an external firm of accountants of the accounts of the Pulsar business at closing. \nIn October 2019, Access Intelligence acquired the Pulsar business (comprising both Fenix Media Limited, which is incorporated in the UK, and Face US, which is incorporated in the US) from Cello Health plc (\"Cello\"). Following the identification of certain accounting questions on some contracts within Pulsar post acquisition, the Board of Access Intelligence commissioned an accounting review to be undertaken by independent accountants BDO. \nFollowing completion of the BDO review, an adjustment of the previously disclosed unaudited financial results for Pulsar is required. Post this adjustment, for the year to 31 December 2018 Pulsar reported unaudited revenues of £6.8 million, gross profit of £3.8 million and an Adjusted EBITDA loss of £0.7 million. Upon acquisition by Access Intelligence, Pulsar's accounting reference period was amended. For the 11 month period to 30 November 2019, Pulsar would have had reported unaudited revenue of £5.2 million, gross profit of £2.3 million and an Adjusted EBITDA loss of £1.7 million. \nPursuant to the terms of the sale and purchase agreement signed on 2 October 2019 (the \"Agreement\"), and under the completion accounts reconciliation process agreed by both sides, Cello Health has agreed to pay Access Intelligence a net cash sum of £1.6m reflecting the shortfall in net assets delivered at closing versus the agreed target closing position. \nIn full and final settlement of any dispute under the Agreement regarding the appropriate valuation of the business, Cello Health has agreed that 4,076,238 of the consideration shares will be sold back to Access Intelligence for £1. As Access Intelligence currently does not h...