Deepverge PLC (AIM:DVRG) has formally announced the sale of Glanaco Limited, the engineering services company based in Cork, Ireland, to Tony Ryan and Michael Fitzgerald, the current management and previous owners, for a consideration of €1.
As announced in June, Deepverge ceased supporting the ongoing costs of its operating subsidiaries, instead seeking to realise whatever value was possible through the sale of one or more of the Labskin, Modern Water and Glanaco business units.
Since then, Deepverge has been suspended from trading on AIM pending clarification of its financial position.
Glanaco incurred costs and liabilities related to other parts of the group since Deepverge’s acquisition in March 2022, and has been left with insufficient cash to continue to operate as a going concern.
In the past financial year, Glanaco posted losses before tax of €75,450 on a turnover of €1.74 million with net liabilities of €42,500.
This was compared to a profit before tax of €39,500 on a turnover of €1.55 million with net assets of €415,000 in 2021.
By transferring the business back to management, the business and associated jobs will be saved, and the group's net creditors will reduce by approximately €500,000 (£432,000).
Glanaco will continue to provide services to Labskin and Modern Water on an “arms' length basis”, said Deepverge, “for a transitionary period as necessary to support the ongoing efforts to realise value through the sale of any of part or all of these businesses”.