Result of Strategic Review

RNS Number : 8619B

AIQ Limited

15 June 2021

 

15 June 2021

AIQ Limited

("AIQ" or the "Company" or, together with Alchemist Codes, the "Group")

Result of Strategic Review

The Board of AIQ Limited (LSE: AIQ) announces that it has concluded its strategic review and implemented the actions noted below.

The focus of the Board in its review has been on preserving cash within the business whilst income levels remain depressed. This has resulted in decisions to cut costs, dispose of non-core activities and prioritise new sources of revenue.

Summary of actions

·   Divestment of certain e-commerce software and technology developed in-house by Alchemist Codes to Wepin Sdn Bhd ("Wepin") for RM200,000 (approximately £35,000), which completed on 28 May 2021.

· Eight in-house developers from Alchemist Codes, along with six members of the sales team and administrative staff, are now employed by Wepin.

·   Charles Yong, CEO of Alchemist Codes, now also employed by Wepin. Mr Yong remains an Executive Director of AIQ, with substantially all of his costs now being paid by Wepin.

· OctaPLUS platform and small team retained to develop product and seek methods to monetise the registered user base.

· Alcodes International, headquartered in Hong Kong, has seen initial sales from IT consultancy projects. Executive Director Edwin Li, who is based in Hong Kong, will focus on building the IT consultancy business and look to expand it into other technology areas such as digital assets.

·     In addition to other reductions, total headcount of the Group is being cut by over 60% to 14 employees.

·     Board and senior management have taken a voluntary cut of 20% in their fees, backdated from 1 May 2021.

·     As a result of these efficiency measures, the Group will recognise savings of approximately £400,000 on an annualised basis.

As at 31 May 2021, the Group had a cash balance of approximately £920,000.  The Group will provide further information at the time of its interim results, which will be announced in July.

Graham Duncan, Chairman of AIQ, said: "Against a backdrop of difficult trading conditions, we have implemented these measures to cut costs and preserve cash while the business seeks to reposition itself by widening its focus beyond e-commerce. The Board is closely monitoring the progress of the Group and will take further action if required. We are pleased, however, that the jobs of many of our employees have been saved as part of the divestment of some of the technology that had been developed by Alchemist Codes. We will provide an update on developments in our interim results next month."  

Enquiries

AIQ Limited	c/o [phone]
Graham Duncan, Chairman
VSA Capital Limited (Financial Adviser & Broker)	[phone]
Andrew Raca (Corporate Finance)
Luther Pendragon (Media Relations)	[phone]
Claire Norbury

 

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