21st May 2021 12:43
Staffline Group PLC - Nottingham-based recruitment firm - Plans to raise GBP44 million via placing of 87.2 million shares and direct subscription of 750,000 shares, both priced at 50 pence per share. Also plans to launch open offer to raise up to further GBP4.4 million. Is carrying out a refinancing of debt facilities, which is inter-conditional with the fundraise.
"The debt refinancing and fundraise are being carried out in order to meet a forecast funding shortfall for the group and to put in place what the board believes to be more appropriate debt facilities with reduced ongoing group borrowing costs," it says.
Adds that it is pleased with trading progress thus far in 2021, and is starting to see benefits of virus restrictions easing. Also publishes unaudited financials for 2020, with revenue falling 12% to GBP927.6 million from GBP1.06 billion in 2019, but underlying operating profit grows 66% to GBP4.8 million from GBP2.9 million. Full results for 2020 to be published in June.
If bookbuild does not close or shareholders do not approve the required resolutions, company warns fundraise and new funding facilities will fail to be carried out.
"In such circumstances, the group would not have sufficient liquidity under its existing facilities to meet its forecast funding requirements. In such circumstances the board would seek to refinance its existing facilities but, based on current information available, the board believes that it is unlikely to be able to do so without an equity raise or some other form of corporate action which it cannot be certain it would achieve," it warns.
Current stock price: 58.80p, down 16% on Friday
Year-to-date change: up 33%
By Lucy Heming;Â [email protected]
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