Amendment to existing loan ag

RNS Number : 2566G

Infoserve Group PLC

20 October 2008

 



Infoserve Group Plc

('Infoserve' or the 'Company')

Amendment to existing loan agreement and trading update

The Company announces that it has entered into a further loan facility agreement with David Hood, a non-executive director and significant shareholder of the Company, by way of an amendment to the existing loan agreement with David Hood dated 19 November 2004 (as amended by agreements dated 25 April 2006 and 2 June 2006).  

The purpose of the loan is to fund general working capital requirements. Pursuant to the agreement, Infoserve Limited, a subsidiary of the Company, will have access to a loan facility of up to £250,000. Amounts advanced under the facility will bear interest at 5 per cent. above the base rate of Barclays Bank plc and will be repaid over a period of two years commencing on 20 October 2009 in such monthly instalments so as to ensure the principal balance is repaid in full by 20 October 2011.

The Directors of the Company (with the exception of David Hood, who is involved in the transaction as a related party) consider, having consulted with the Company's nominated adviser, WH Ireland Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Further to the announcement made at the Annual General Meeting on 19 September 2008, the Company is pleased to confirm that September's trading maintained the increasing sales momentum of the last five months. As a consequence, trading in the first half of the year was  marginally ahead of management targets for the period, set at the beginning of the year.

As previously stated in the AGM statement, as a result of this improved trading performance and current sales trends, the business remains on track to achieve cash neutrality on a monthly basis before the end of the financial year.

The Directors confirm that the Company will announce its Interim Results for the 6 months' period to 30 September 2008 on Monday 15 December.

For further information please contact:

Infoserve Group Plc Steve Barnes, Chief Executive Officer	Tel: [phone]
WH Ireland Limited David Youngman/Robin Gwyn	Tel: [phone]

 

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