InterQuest Group PLC - Warranty Claim Update

Pubished 9th November 2012


Warranty Claim Update

£1 million to be received as settlement of warranty claim against vendors of Contract Connections Limited (“CCL”)

Settlement
The Board are pleased to announce that they have reached an out of court settlement following mediation with the vendors of CCL for a repayment of consideration in the amount of £1 million. The settlement agreement was signed on Friday 9th November and, under the terms of the settlement agreement, the cash repayment of consideration is payable by the vendors to InterQuest by 7th December 2012.

As a result of the settlement the Group has discontinued its warranty claim and the matter is now concluded. The settlement was reached on the basis that the vendors of CCL made no admission of liability or of wrongdoing in any respect relating to the subject matters of the claim.

Background
InterQuest purchased the entire share capital of CCL on 21st June 2011 for a consideration of £4 million. On 12th August 2011, the Group announced that a major client of CCL terminated its contract with CCL.

On 23rd December 2011, the Group announced that it had issued formal notice against the vendors of CCL that it would be pursuing a warranty claim for a repayment of consideration.

Gary Ashworth, Chairman of InterQuest, commented: “I am pleased that we have reached an agreement to settle the warranty claim against the vendors of CCL and that this matter is now concluded. This has been an unwelcome distraction on management time and we can now focus entirely on delivering our strategy which will see InterQuest emerge as a broader and stronger IT recruitment business.”

About InterQuest

The InterQuest Group is a specialist technology recruitment Group providing contract and permanent recruitment services within niche disciplines in the UK, and Southeast Asia. The Group comprises specialist divisions covering a range of technology and analytical skill sets including Analytics, Digital, ERP (SAP, Oracle), Enterprise Systems Management (Infrastructure, ITSM, ITAM), Mobile, Quality Assurance & Testing and Telecommunications. The Group operates across multiple industries with a significant presence and expertise in Financial Markets (Banking & Insurance), Public Sector, Not-for-Profit and Retail.