Placing, new contract wins and Broker appointment (4826G)
May 12 2011 - 6:02AM
UK Regulatory
TIDMMOGP
RNS Number : 4826G
Mountfield Group plc
12 May 2011
Mountfield Group PLC (the "Company" or the "Group")
Placing to raise GBP560,000 to provide the Group with additional
working capital to fund significant contract wins in the data
centre construction sector
Mountfield Group (LSE MOGP) , the AIM-quoted company
specialising in the construction of data centres is pleased to
announce that the Company has placed 37,333,334 new ordinary shares
of 0.1 pence each ("Shares"), representing approximately 17.56% of
the Company's enlarged issued share capital (the "Placing").
The new Shares have been placed with institutional and retail
investors at a price of 1.5 pence per share, for gross proceeds of
GBP560,000. The Placing is subject to admission of the new Shares
to trading on AIM becoming effective which is expected to occur on
the 17(th) May 2011. The proceeds of the Placing will be used to
fund working capital required for the delivery of new contract wins
in the rapidly growing data centre construction space.
In that context the Company is also pleased to announce that it
has been awarded three contracts with an aggregate value of GBP5
million to fit out data centres in the UK for leading data centre
operators. All three contracts are expected to be delivered during
2011, one of which may lead to further orders over the coming year
as further phases of the project are built out.
The secured order book for the four months to the end of April
2011 exceeds the total revenue achieved for 2010. Management
currently believe that existing sales delivered hitherto combined
with clear visibility of the robust Group order book indicate that
revenues for the Group in the current year are likely to be
significantly ahead of the financial year 2010.
After 2 years of limited activity the demand for data centre
builds has returned during the last quarter in a very significant
way and current market indications are that this activity in the
sector looks set to continue for the foreseeable future, and
therefore the Group looks forward to further gains for its core
business activity.
The IT sector is a significant consumer of energy and the
Company, along with its working partners, is dedicated to construct
more energy efficient premises and these projects will incorporate
designs to maximise efficiency and reduce carbon footprint.
Following a review of the Group's expanding order book, it has
been agreed with note holders that redemption of the Company's
existing GBP4.4m Loan Notes will be deferred from June 2011 to June
2016. This, along with the Placing announced today, will provide
the financial stability required to ensure that the Group has
access to the working capital that it requires to finance the
increased level of orders that it has received this financial
year.
The Company is also pleased to announce the appointment of First
Columbus LLP as their broker with immediate effect.
Commenting on the announcement, Peter Jay Chairman of the
Mountfield Group PLC said:
"We have noted a distinct upturn in this specialist sector of
our industry over the last two quarters which, having improved our
position in 2010, looks to have a significant positive impact on
our figures for 2011. It is a testament to the high regard that the
Mountfield Group has with data centre installations that we have
been chosen to undertake these projects for some of the UK's
leading operators of data centres
For further information please contact:
Mountfield Group Plc +44 (0)20 7398 7718
Graham Read
Chief Executive Officer
Arbuthnot Securities Limited +44 (0)20 7012 2000
Tom Griffiths
First Columbus LLP +44 (0)20 3002 2071
John Nuttall
De Facto Financial +44 (0)20 7556 1063
Mike Wort, Anna Dunphy
Notes to Editors:
Mountfield Building Group Limited: The company carries out works
as a main contractor with end-user clients. Since the 1990's
Mountfield has specialised in the installation of data centres and
has successfully completed more than 40 data centres throughout the
last 12years,
MBG Construction Limited: Carries out specialist builderswork
and multi trade packages for leading fit-out and refurbishment main
contractors. Deploying its own directly employed skilled labour
Mountfield delivers a comprehensive range of services together with
specialist partnering subcontractors. In addition to data centre
trade packages, Mountfield carried out builderswork packages that
include stripping out, blockwork, plastering, riser/lift
formations, ceilings, partitions and general builderswork in
connection with the supply of mechanical and electrical
services.
Connaught Access Flooring Limited: The company was formed in
1992 as a provider of flooring systems to main contractors and
corporate end users. The business has grown substantially since it
was acquired by Graham Read and Andrew Collins in 2004. It has
supplied and installed flooring in excess of 5million square feet
to both office and data centre installations since that time.
Mountfield Land Limited: This company (which was incorporated in
2008) sources and enhances the value of land before selling its
interest to developers. It is currently sourcing land options for
potential data centre sites that would complement the groups other
subsidiary companies. It is not exposed to any financial risk or
liability from its dealings or transactions as it does not purchase
any sites.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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