Friday 18 October 2019

Dermot Desmond's IIU in discussions to put €10m into troubled Datalex

Datalex ceo Aidan Brogan
Datalex ceo Aidan Brogan
Gavin McLoughlin

Gavin McLoughlin

Dermot Desmond’s International Investment and Underwriting (IIU) is in discussions to put €10m into Datalex, the troubled travel software business where IIU is the biggest single investor.

The €10m would be made up of a €6.1m secured loan facility, and €3.9m in new shares.

“While discussions are at an advanced stage, there can be no certainty that terms will be agreed with IIU. A further announcement is expected in the coming days,” Datalex said.

The software company’s shares have plunged since it told the market that it may have mis-stated its half-year results. It said it expected to report a loss in adjusted earnings before interest, tax, depreciation and amortisation for the full year, because of a shortfall in services revenue relating to a contract with a customer.

It said the potential misstatement of half-year results had been because of “accelerated recognition of revenue” from that contract.

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