Barkby shares rise 150% as AIM considers sale of sleep sciences business
- Barkby said he was “exploring options to maximize value for shareholders” of CSS
- CSS uses neuroscience to make natural sleep-enhancing products
Barkby Group shares doubled in value on Monday after it revealed the potential sale of a sleep technology developer, in a potential deal worth tens of millions.
The AIM-listed company told investors it was “exploring options to maximize value for shareholders” of Cambridge Sleep Sciences (CSS), which uses neuroscience to make products to improve natural sleep.
Sky News first reported on Sunday that the company was considering a possible sale of CSS to focus on its road property portfolio.
Rest better: Barkby Group is the parent company of Cambridge Sleep Sciences (CSS), which uses neuroscience to make products to improve natural sleep
Headquartered in Abingdon, Barkby operates several convenience retail stores, drive-thru restaurants and electric vehicle charging infrastructure points, among other assets in arterial road locations.
It also owns a used car dealership in Northamptonshire and six gastropubs in the Cotswolds, Oxfordshire and Sussex.
The company said advisers had been appointed to begin a “strategic review” of its investment in CSS, known for its SleepHub and SleepEngine products.
Reports suggest a sale could net Barkby around £50m, although the company insisted to investors there was “no certainty” any offer or sale would materialise.
Sky also reported that members of Barkby were in talks to give access to its technology to “big names” in the hospitality and healthcare industries.
Over the next three years, Barkby expects the division to generate a turnover of at least £10m a year under the licensing deals currently agreed.
Three months ago, CSS signed a five-year agreement with Sleep Sense International that will allow it to use its SleepEngine platform to develop a smart pillow.
Just a week later, the firm announced a partnership and licensing agreement with Bowers & Wilkinsthe consumer audio division of medical technology manufacturer Masim.
Charles Dickson, chief executive of Barkby, said: “We are delighted with the progress made by CSS over the last three years.
‘The market opportunity for its technologies is clearly significant and we look forward to providing further updates on CSS progress in due course.
“We expect CSS to become a significant business in its own right, and the purpose of the strategic review is to assess the most appropriate environment and corporate structure for the company to enable it to realize its full potential, as well as what is best placed “. interests of Barkby shareholders.
Barkby Group Shares it soared 144.4 per cent, or 4.33p, to 7.33p following the announcement.
