An insolvency and restructuring veteran has taken a seat at the board of moribund cloud services firm Outsourcery as one of the requisite Ts&Cs to secure a funding lifeline from Vodafone.
The AIM-listed firm run by former Dragons’ Den badass Piers Linney and joint-CEO Simon Newton revealed David Duggins, senior advisor at Gordon Brothers Europe has rocked up as non-exec director.
More ReadingOutsourcery sold after Dragon runs out of puffOutsourcery: We've had offers for our assets (and, er, shareholders might get nothing)Tech channel veteran De Sousa turns back on OutsourceryOutsourcery bags another £1m investment as losses start shrinkingDragon's Outsourcery biz bags another £1m of cash to burn
Financial results for calendar ’15 again fell some way short of earlier expectations, and the funding arrangement was supposed to buy Outsourcery time to restructure and sell non-core assets.
Not everyone shares the management’s belief they can turn the business into a viable profit making machine (or even a break-even entity) - some analysts and industry onlookers think Outsourcery is likely to be offloaded this summer, potentially to Vodafone.
Outsourcery floated in May 2013 at 117 pence per share but the price is currently 5.12 pence, giving it a market cap of £2.85m.
Huggins certainly has experience of restructuring businesses - he’s held directorships at tens of companies that were liquidated, according to a list that Outsourcery was obliged to include in today’s appointment filing with the London Stock Exchange. ®