Kingswood Holdings Ltd - London-based wealth and investment management company - Says it is in advanced discussions with HSQ Investments Ltd regarding a possible cash acquisition at 7 pence per share. HSQ currently holds 68.4 per cent of Kingswood’s voting rights and have reiterated their support for the Company. HSQ initially invested in Kingswood in September 2019, providing up to £80m of growth equity capital to the business. Company comments: ‘HSQ has confirmed that they continue to be supportive of the business but believe that this is most appropriate from a position as sole institutional shareholder alongside the company moving to an unlisted, private company setting and therefore they have stated that they would be willing to provide the required near-term funding only on this basis. The Kingswood Independent Directors are strongly of the view that there is no other near term credible alternative to the company other than the continued financial support from HSQ.’

Further, comments on its current financial position. Says has been impacted by headwinds seen across the sector over the last couple of years, resulting in weaker growth than expected. Adds acquisition strategy has seen debt position move from a net cash position of £39.7 million to a net debt position of €48.1 million at December 31 2023. Has been provided with additional loans from HSQ or its affiliates amounting to £21 million to satisfy working capital obligations.

At December 31 2024, unaudited gross debt from the senior debt facility and the loans provided by HSQ and/or its affiliates since February 2024 is £90.7 million. Says has imminent obligations which significantly exceed the cash balance available at the end of March 2025. ‘In the absence of new external financial support, the Company would not be able to satisfy these obligations.’

Current share price: 7.50, closed down 11% in London on Wednesday

12-month change: down 29%

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