3rd Nov 2005 12:35
3 NOVEMBER 2005 SERVICEPOWER TECHNOLOGIES PLC ("ServicePower" or "the Company") PLACING OF SHARES ServicePower announces today that it has placed, conditional on admission,5,957,268 new ordinary shares of 10 pence each in the Company ("the PlacingShares") with a number of institutional investors and with two directors of theCompany ("the Placing"). The Placing Shares were placed at a price of 32 penceper share. The Placing has raised approximately ‚£1.9 million gross of new fundsfor the Company.The Directors believe the Group has sufficient cash in order to achieve itsexisting objectives both within the Field Service Solution ("FSS") division andthe Software Division. The net proceeds of the Placing however will allow theGroup to increase its investment in the FSS division beyond previous forecasts.This increased investment will allow the FSS division to primarily implement arecently announced contract, which the Directors believe offers the Groupsignificant opportunity to increase the anticipated revenue and margin growthof the division, and pursue a number of other commercial initiatives within theFSS division.The Directors are confident the Company is currently trading in line withmarket expectations, however they expect post-Placing the Company to incurhigher losses than expected during 2005 as the investment in the FSS divisionis increased. As a result of this investment however the Directors expectrevenue during 2006 to be higher than previously expected. This is in line withthe Company's stated strategy of achieving revenue growth by moving into newmarkets.David Brisco, CEO, ServicePower, commented, "We feel we have made significantprogress within the FSS business which is now bearing fruit in the form ofsignificant new business opportunities. We feel that this is the right timetherefore to invest in this area in order that we are able to fully exploitthis opportunity and leverage our market position."In order to effect the Placing, the Company has issued, conditional onadmission, 5,957,268 Placing Shares at 32 pence per share, this representsdiscount of 5.88 per cent to the closing middle market price of the Company on1 November 2005 (being the latest practicable date prior to this announcement).The Placing Shares represent 8.02 per cent. of the current issued share capitalof the Company and 7.42 per of the issued share capital as enlarged by thePlacing. Application has been made to the UK Listing Authority and the LondonStock Exchange for the Placing Shares, which will rank pari passu with theexisting shares in issue, to be admitted to the Official List and to trading onthe London Stock Exchange's main market for listed securities ("Admission").Admission is expected to become effective on 9 November 2005.Of the shares placed, 125,000 Placing Shares have been subscribed for by BarryWelck, ServicePower's Non-Executive Chairman, 185,736 Placing Shares have beensubscribed for by Lindsay Bury, a Non-Executive director of the Company and781,250 Placing Shares have been subscribed for by BFLAP, a Limited LiabilityPartnership of which Lindsay Bury is a partner. Further details of Mr Welck'sand Mr Bury's subscription and resultant holdings are released in a separateannouncement released by the Company today.ENQUIRIESContacts:David Brisco, Chief Executive Officer Tel: 0161 476 2277Barry Welck, Non-executive Chairman Tel: 07831 396539ServicePower Technologies PLCMichael Brennan Tel: 020 7071 4300Evolution Securities LimitedTom Moriarty / Archie Berens Tel: 020 7651 8688 / 07802 442486ICIS LimitedENDSERVICEPOWER TECHNOLOGIES PLCRelated Shares:
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