8th Sep 2009 07:00
8 September 2009
Redstone plc
("Redstone" or the "Company")
Financial Update
Since the Trading Update issued on 4th June in respect of the year ended 31 March 2009, Redstone has been reviewing its annual accounts with its auditors. As a result of a number of adjustments coming to light in the post balance sheet review period, the Board now expects that adjusted EBITDA* for the year ended 31 March 2009 will be between £5 million and £6 million.
As previously disclosed, 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.
As part of this exercise, Redstone has entered into discussions with Eckoh Technologies PLC ("Eckoh") regarding the loan facility between Symphony Telecom Holdings Limited ("Symphony"), a subsidiary of Redstone, and Eckoh. The loan facility was in place prior to Redstone's acquisition of Symphony from Eckoh in 2006. The total outstanding loan amount is £2.7 million (plus accrued interest) (the "Outstanding Amount"). A scheduled repayment instalment of £1 million (plus accrued interest) under the loan facility was due to be paid by close of business on 28 August 2009 (the "Repayment Date"). The Company entered into discussions with Eckoh prior to the Repayment Date but to date these discussions have not reached a successful outcome. A further announcement is expected to be made in this regard shortly.
*before exceptional items and stock compensation charge
ENQUIRIES:
Redstone plc
Tel. +44 (0)845 203 3943
Tim Perks, Chief Financial Officer
Investec
Tel. +44 (0)20 7597 4000
Andrew Pinder
Tim Pratelli
ICIS Limited
Tel. +44 (0)20 7651 8688
Tom Moriarty
Bob Huxford
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