Salford-based Netservices have agreed to sell its consumer broadband operations to Leeds-based 186k Ltd for just over £1 million. The initial amount paid will be £300,000 with the rest in instalments.
The sale includes the transfers of contracts of 174 of it consumer broadband resellers covering around 23,000 end user connections, BT pipes and 5 of its current staff. Netservices will retain the business to business resellers (of which there are 23) however 186k will take over the management of these in return for a share of the revenue.
Netservices floated on AIM in March last year but saw its share plummet due to a fierce price war in broadband. However, now sold, CEO Mark Vickers has said that the revenue received would enable Netservice to focus on converged voice and data services.
The contracts sold to 186k accounted for £4.5 million of Netservices’ revenues in the last financial year. The company is expecting to announce revenues of £7.6 million for the six months to February 28 and pre tax losses of £760,000.