(BFM Bourse) – Sword Group announces that its net cash will increase very significantly thanks to the sale of its “Governance, Risk and Compliance” activities to the specialist Riskonnect.
Sword Group’s stock price took off by 6.81% to 41.55 euros on Tuesday, while the CAC 40 continued to falter due to the war in Ukraine, after the announcement of the signing of an agreement to sell its “Governance, Risk and Compliance” activities for an amount not yet disclosed.
Riskonnect, an American specialist, will soon resume these activities, the finalization being planned in about six weeks, the time to obtain the regulatory authorizations.
Sword specifies that with the proceeds of the sale, its net cash position “will grow very significantly” and allow, among other things, to finance new acquisitions. As of December 31, 2021, the company had a net cash balance valued at €55 million before restatements related to the adoption of the IFRS 16 accounting standard.
In addition, the objectives of the 2021-2025 business plan remain unchanged, “thanks to our outperformance in terms of organic growth”, underlines the ESN, which recently indicated that it forecast organic growth this year of 15% (from two points higher than the objective of its 2025 plan). “The overall revenue and EBITDA objectives mentioned in this business plan will be achieved and even exceeded”.
The firm will communicate again with investors during the presentation of the detailed results for the past financial year, on March 10.
Guillaume Bayre – ©2022 BFM Bourse