31 July 2018
Legendary Investments PLC ("Legendary")
Virtualstock Holdings Limited
Appointment of René Schuster as Chairman and completion of EIS fundraising
Legendary is pleased to report that Virtualstock Holdings Limited ("VS"), the provider of technology solutions for the leading UK retailers and a number of leading NHS Trusts, has appointed René Schuster as Chairman with immediate effect. It has also completed an Enterprise Investment Scheme (EIS) fundraising of £3.4 million
René has a strong track record in growing global telecommunications and technology businesses. He is most renowned for his achievements as CEO of Telefonica Deutschland, in which he led the Company through the largest IPO in Europe and most successful DAX IPO in 2012, raising €1.6 billion for Telefonica Group. He grew Telefonica Deutschland from a €3 billion market capitalisation company into a €14 billion market capitalisation organisation and into one of the largest telecommunications operators in Europe and established O2 as the number one consumer brand in Germany.
He has also held a number of other senior leadership positions in the telecommunications and technology sectors including Chief Operating Officer at Vimplecom, one of the world's largest telecommunications services companies, Global Marketing Director at Vodafone plc, Senior Vice President at Hewlett Packard and European CEO of Compaq Computer Corporation. He was also a Managing Partner at KPMG and a Director at IBM.
René also has extensive private equity experience having been Partner at Vitruvian, a European private equity firm specialising in providing capital for high growth companies in the FMCG, retail, hardware and SAAS sectors and is currently a Senior Partner at the private equity firm, Ilion Holdings GmbH.
VS has also completed an EIS fundraising round of £3.4 million which was oversubscribed by more than 70%. This fundraise was completed at the same valuation at which Notion Capital invested in July 2017. Post money, this values VS at approximately £70m. The funds will be used to scale the business and to prepare for international expansion. Following this raise, Legendary's stake in VS is 6.8%.
VS's momentum continues with revenue growth increasing from over 60% to over 70% over the last two years. In the same time, VS's total headcount has also increased from 20 to 116.
René Schuster, incoming VS Chairman commented:
"I am delighted to be joining the Board of Virtualstock. I have been impressed by the strength of the management team, the client base and particularly its unique proposition, built from an expert understanding of the specific needs of the retail and healthcare sectors, which is helping leading UK retailers and the NHS keep pace with rapid structural changes.
"With its blue-chip client base and compelling solution, I am excited by the opportunities presented to the [VS] Group to roll out and scale its offering across other verticals and particularly across new international markets. I look forward to drawing upon my experience and global network to take the Company [VS] into its next chapter of growth."
Andrew Mills, VS CEO commented:
"I am delighted to welcome René to our Board as Chairman. He brings a vast network and wealth of expertise in leading multinational companies and advising high growth companies on scaling up and raising capital in the telecommunications and technology sectors across Europe and America. He will be hugely valuable to Virtualstock as we embark upon our next phase of growth and prepare for international expansion.
"I am also extremely pleased that we have completed our latest round of fundraising and by the strong levels of interest and support we received from new investors. The new funding will help facilitate our ambitious growth plans."
Zafar Karim, Executive Chairman of Legendary Investments PLC, commented:
"Since our first investment in VS, VS has grown from a small promising company into one which counts the country's leading retailers and NHS Trusts amongst its clients. We were its first outside investors and remain its largest outside investor. Virtualstock is fast growing and is in a cutting edge area of technology.
"Its success is attested to be the senior personnel it is attracting. We welcome the appointment of René as Chairman. His network, experience and expertise at all stages of development of businesses from private equity, through to IPOs to post IPO growth is measured in billions and will be invaluable to Virtualstock and accelerate its progress and expansion internationally."
- ENDS -
Legendary Investments PLC
Zafar Karim / Thomas Reuner
020 8201 3536
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Grant Thornton UK LLP
Colin Aaronson / Harrison Clarke
020 7383 5100
S.P. Angel Corporate Finance LLP
Richard Parlons / Richard Morrison
020 3470 0470
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Virtualstock is one of the UK's fastest growing tech companies, helping businesses in retail and healthcare compete in today's agile digital economy. Its client list includes 6 of the top 10 UK retailers including Tesco, Sainsbury's Argos, John Lewis and Dixons Carphone, as well as the NHS. By unlocking and connecting the data scattered across disparate parts of the supply chain, Virtualstock's cloud-based solution, The Edge, helps retailers drive efficiency, growth and customer satisfaction, supported by an integrated and seamless digital supply chain. The healthcare equivalent, The Edge4Health™, is delivered in partnership with NHS Shared Business Services to help fuel industry-wide efficiency and operational productivity for both Healthcare Providers and Suppliers.
About Legendary Investments PLC
Legendary Investments PLC focuses on assisting companies and making investments which exhibit the potential to generate returns of many multiples through capital appreciation. Typically, Legendary takes stakes in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth. Examples of such sectors include technology, energy and natural resources.
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