26th May 2015 07:38
LONDON (Alliance News) - Publishing Technology PLC Tuesday proposed a discounted share placing to raise up to GBP9 million and an open offer to raise a further GBP1 million, which it plans to use to pay down its debts, as it posted a swing to a pretax loss for 2014.
The publishing software and services company posted a pretax loss of GBP4.0 million for 2014, compared to a pretax profit of GBP665,000 in 2013, as revenue fell to GBP14.4 million from GBP16.9 million, gross margin was reduced and it invested in restructuring the business throughout the year.
Revenue was hit by two larger publishers moving to new platforms in its ingentaconnect business, and management changes which resulted in a reduction in revenue at its PCG business.
The company said that its performance in 2014 was "disappointing", but having undertaken restructuring, expressed confidence moving forward.
Trading in the first few months of 2015 has been in line with management expectations, with a "robust order book", it said.
Publishing Technology has been considering a minority investment from an overseas party, but said that following "careful consideration" it had decided a placing would be in its best interests instead. It plans to use the funds from the placing and open offer to pay down debts it has accrued, including GBP1.5 million to pay down a loan note and GBP1.3 million to pay down short-term director's loans.
The company plans to raise GBP9 million in the placing of 7.5 million shares, and a potential further GBP1 million through an open offer for 833,333 shares, both at a price of 120 pence, a 19% discount from its closing price of 148 pence last Friday.
Shares in the company are trading down 7.1% at 137.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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