24th Aug 2009 11:02
Redstone plc ("Redstone" or the "Group")
BSF Contract and Financial Position
Birmingham BSF Contract
24 August 2009 - Redstone, the national IT and Communications solutions provider, announces today that, as part of a consortium led by Catalyst Lend Lease and Bovis Lend Lease, it has achieved financial close on the first phase of the Building Schools for the Future ("BSF") programme in Birmingham. The 10-15 year scheme involves the redevelopment of many of the city's primary secondary and special needs schools, providing for the educational needs of over 150,000 students. The terms of the contract are as previously announced on 3 February 2009.
Financial Position
As previously stated, the Group is currently exploring potential ways to further reduce indebtedness to a more sustainable level which the Board expects to achieve through a combination of further asset disposals, cost reductions and/or potentially raising new funds. A further announcement is expected to be made in this regard shortly.
Whilst the Group continues to explore these options it has now reached agreement with Barclays Bank PLC for an extended overdraft facility and as a consequence now expects that the Group's bank debt after completion of the sale of Redstone Telecom (announced on 14 August 2009) will be approximately GBP16 million and the Group's net debt will be approximately GBP19 million (assuming full release of the retention fund relating to the disposal of Redstone Telecom).
Contacts:
Redstone plc
Tel: +44 (0) 845 2033943
Tim Perks, Chief Financial Officer
ICIS Limited
Tel: +44 (0) 20 7651 8688
Tom Moriarty
Bob Huxford
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