Mindflair Realises £2.6m from Getvisibility Sale
Why we think this is good
The RNS announcement details the realisation of Mindflair's investments in Getvisibility, a cybersecurity company, for a total of approximately £2.6 million. This represents a significant return on the company's investment, with a 6.0x multiple on the direct investment and a 4.5x multiple on the indirect investment through the SVV1 fund. The disposal will also help the company reduce its outstanding debt, improving its financial position. While this is a positive development, it does not meet the criteria for a 'Very Good' rating as it is not a profit upgrade or a statement of trading significantly ahead of market expectations.
Key Points
- Mindflair to sell its stake in Getvisibility for £2.6 million
- Disposal represents a 6.0x return on direct investment and 4.5x on indirect investment
- Company will use proceeds to settle outstanding loan notes of around £800,000
Summary
Mindflair plc has agreed to sell its entire directly held unquoted minority position in Getvisibility to Forcepoint, a global leader in data and cloud security. The disposal is expected to generate a gross cash inflow to the company of approximately £2.6 million. This represents a 6.0x return on the company's direct investment and a 4.5x multiple on its indirect investment through the Sure Valley Ventures fund. The company will use part of the cash inflow to settle the remaining outstanding loan notes of around £800,000, improving its financial position.