Financials

Financials: 2016 delivers strong Operating Cash inflow and four technology investments rationalised to form a solid platform for Initial Public Offering

EXTRACT FROM 2016 CHAIRMAN & CHIEF EXECUTIVE REPORT

I am pleased to announce the full year results for Quob Park Estate for the period ended 31 December 2016. The progress made to date enables the Company to upgrade its share price target to significantly exceed the £50 goal. This target was set within the Company’s Private Placement Memorandums for subscriptions of £5 and £10 per share respectively, both of which were significantly oversubscribed. The upgraded share price target is now £80+, an increase of more than 60%.

The Quob Park Estate core business has generated a strong Operating Cash inflow, including having collected all £8.6m of debtors at the 31 December 2015 Balance Sheet date. For the second year in a row it has also delivered a significant Adjusted Profit Before Tax of £2.9m (US$3.6m) down slightly from the Statutory Profit Before Tax of £3.6m (US$4.5m) in 2015. The achievement of multi-year ‘Strong Cash Collection’ and ‘Significant Adjusted Profit Before Tax’ has continued into 2017.

Following Q1 2017, the ownership of the Quob Park Solutions, Quob Park Telecoms, Quob Park Health and Quob Park YooDoo brands are now directly held by Quob Park Estate. The Quob Park Solutions brand is now being used to describe our core trading business.

Quob Park Estate now comprises two divisions; the first, and the ‘Core Business’, is our digital transformation led technology solutions division which is now trading as Quob Park Solutions.

Quob Park Solutions was established by acquiring the assets from four of the Company’s main technology investments. Then consolidating and rationalising them to be able to deliver the Company’s solutions being its ‘Digital Operating System Cube Platform – OS3’ and its ‘OS3 Frameworks’ based suites.

The core technology underpinning these solutions is already proven with vertical industry suite offerings in both the Telecoms Sector and in Connected Health. The Insurance Sector is planned to be added soon.

There is also a clear strategy and timescale in place, which has been fully communicated to existing clients, to move all our solutions towards a single digital platform with a modern microservices based architecture.

The Company’s other division is an established investment vehicle which invests as Quob Park Portfolio. Its investments are primarily in businesses that leverage either the consultancy skills and / or technology from other areas of Quob Park Estate.

Quob Park Portfolio has £10.8m (US$13.4m) invested by Quob Park Estate as at the Balance Sheet date (in a combination of debt funding £6.3m (US$7.8m) plus investment in its share capital £4.5m (US$5.6m)). This level of investment has increased in 2017.

With all the required Core Business assets now in place, and

a significant market cap, and

a strong Balance Sheet, and

£25m (in loan notes) on offer to support its growth towards a planned Initial Public Offering in North America;

Quob Park Estate is well positioned as a digital transformation led
technology solutions and / or investment partner
that any scale of business can rely upon

A message from the Founder, Chairman and Chief Executive Officer

 
An Initial Public Offering from Quob Park Estate’s Quob Park Solutions Division, in North America, is targeted before 2022 provided at least $1bn (c.£800m) valuation can be met in that timescale – implying a price per share of $100 (c.£80) based upon the current fully diluted number of shares

“The Quob Park Estate team are focusing on a strategy to build at least 2 more high growth, digitally disruptive technology based, businesses with the first that is now being incubated within Quob Park Solutions targeting a $1bn+ initial valuation for it to go public”

“this strategy is underpinned by the track record of the Board delivering $2bn+ digitally disruptive technology based businesses in the past”