Comms Group Limited (ASX:CCG) announced that the Board of Directors (the “Board”) has initiated a strategic review of its portfolio of businesses. The assessment will assist the Board as it considers various strategic alternatives to drive shareholder value in the Company. These alternatives include, but are not limited to, the possible sale of one or more of Comms Group’s businesses.

“Comms Group is executing on a strong, well-resourced plan to deliver revenue and recurring revenue growth, as well as significant improvements in EBITDA and cashflow this financial year and into FY24. We expect achievement of this plan to deliver significant shareholder benefits which the Board believes is not fully reflected in the market’s current valuation of the Company,” said Peter McGrath, Chief Executive Officer and Managing Director. “Accordingly, the Board and management believe it is an appropriate time to initiate a comprehensive review of the Company’s portfolio.

The review aims to identify and evaluate opportunities to further enhance shareholder value. It is the Board’s view that the sum of the parts is worth more than the market’s current valuation of the Company. As we undertake this review, we remain fully focused on delivering our plan and remain committed to our customers, partners and employees.” The Board has not set a timetable for completing the process and will disclose developments relating to the strategic review when the Board has approved a specific agreement or transaction, or has terminated its review as there can be no assurance that the process will result in any transaction.

Comms Group has retained Latimer Partners as financial advisers to assist in the review.