1st Jul 2020 07:28
(Alliance News) - St James House PLC on Wednesday said it will enter into an unsecured convertible loan note agreement for GBP415,000 as it posted revenue growth for financial 2020.
The lottery and e-commerce operator said the notes have a maturity date of July 6, 2023. They are convertible at a price of 10p per share and have an interest rate of 5% per annum.
"This essential injection of cash, when combined with the capitalisation of liabilities, the stability of the lottery business and the steady growth of the payments business means the outlook for the business is positive despite the challenges all businesses have and continue to face. We will continue to be prudent and focus on improving not just the day to day business performance but also delivering long term balance sheet improvements," said Chief Executive Graeme Paton.
Following admission, the company will have 4..2 million shares in issue.
Turning to its recent performance, St James House said revenue for its financial year to the end of January was GBP952,000, up 1.5% from GBP938,000 the year prior.
Its payments division has continued to improve, especially in non-card payments, with EURO IBAN account openings rising a further 16% between 3 April and 17 June and accounts for the pound sterling growing 20%. It added that its lottery business has not been significantly hurt by the pandemic, as the overall number of lines played during June 2020 has been consistent with the same period in 2019.
An extension until October 31 has been granted for the publication of its full unaudited results.
Separately, the company said it has issued legal proceedings against Michael Peters, due to his failure to provide GBP500,000 in subscription funds owed by Auxilum Investere SJ Ltd.
In January, Windsor-based St James House said Auxilum subscribed for 1.7 million St James House shares at 30 pence each, thereby acquiring a 30% stake. The company had welcomed the subscription, having earlier warned about constraints on its working capital. However, attempts to recover the funds have been unsuccessful.
The stock closed untraded on Tuesday in London, last quoted at 67.50 pence.
By Ife Taiwo; [email protected].
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