21st Feb 2014 08:59
LONDON (Alliance News) - Communications and markets business Porta Communications PLC Friday said it has raised GBP7.0 million, before expenses, in an oversubscribed placing of over 53.8 million shares, funds it will use to reduce its debt and make acquisitions.
Porta Communications said the purpose of the placing was to raise funds for a number of potential acquisitions, improve the ability to develop its income stream, and reduce its debt. It said the shares were placed at 13 pence per share.
The company said it now expects to report revenue of around GBP14.0 million for the six months to the end of December 2013, and approximately GBP6.9 million in fee income.
Over the last two years, the group has grown its operations through a combination of acquisitions and start-ups, as well as expanding its international presence.
Porta Communications said it is currently in preliminary discussion regarding a number of potential acquisitions, which would accelerate its geographic expansion.
"The identified acquisition targets are in the UK advertising and public relations sectors. The total consideration for the proposed acquisitions is expected to be approximately GBP12.1 million, of which approximately GBP7.7 million is expected to be funded with cash and with the balance funded through the issue of shares," the company said in a statement.
The group said the acquisitions are expected to add a combined annual fee income of approximately GBP8.75 million and net profit of approximately GBP1.75 million.
Shares in Porta Communications were up 4.4% Friday morning, trading at 15.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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