Bank Facility Extension & Strategic Review Update

RNS Number : 2386C

Tekmar Group PLC

10 October 2022

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE AND THERE CAN BE NO CERTAINTY THAT ANY FIRM OFFER WILL BE MADE, NOR AS TO THE TERMS ON WHICH ANY OFFER WILL BE MADE

THIS ANNOUNCEMENT CONTANS INSIDE INFORMATION FOR IMMEDIATE RELEASE

Tekmar Group plc

Extension of Banking Facility and Update on Strategic Review Process  

The Board of Tekmar Group plc ("Tekmar" or the "Company") is pleased to announce it has agreed with Barclays Bank PLC ("Barclays") a 12-month extension of its committed £3.0m CBILs term loan facility. This extends the maturity date to 31 October 2023.

Gross cash at 30 September 2022 was £8.5m compared to £5.1m at 31 March 2022. After a drawdown of banking facilities of £7.0m, net cash was £1.5m, an improvement of over £2.0m since 31 March 2022, demonstrating strong cash collection over the last 6 months.

Derek Bulmer, CFO, commented, "We are pleased to have extended the £3m CBILs facility by a further 12 months and thank Barclays for their ongoing support and look forward to building on our strong relationship going forward.  We remain focused on improving the Group's cash position and it is encouraging to see the hard work of the team reflected in the Company being cash generative in the last six months."

Update on Strategic Review and Formal Sales Process

On 13 June 2022, the Company announced that the Board had commenced a strategic review to seek a strategic partner to support its opportunities for growth and provide additional balance sheet strength. These options included, but were not limited to, a sale of the Company conducted under the framework of a "formal sale process" in accordance with the Takeover Code.

Having received indications of interest, the Company is exploring several options with interested parties.  There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made. Further updates will be made when appropriate.

Enquiries

Tekmar Group plc

Alasdair MacDonald, CEO  [phone]

Derek Bulmer, CFO

Bamburgh Capital Ltd (Rule 3 Adviser and Joint Financial Adviser)

Murdo Montgomery  [phone]

Richard Evans  [phone]

Alex Clarkson  [phone]

(email addresses: [e-mail])

Singer Capital Markets (Nominated Adviser, Joint Financial Adviser and Broker)

Rick Thompson  [phone]

Rachel Hayes

Additional information

The person responsible for arranging the release of this announcement on behalf of the Company is Derek Bulmer, Chief Financial Officer.

In accordance with Rule 26.1 of the Code, a copy of this announcement will be available (subject to certain restrictions relating to persons resident in restricted jurisdictions) at  https://investors.tekmar.co.uk/investors/investor-centre/ by no later than 12 noon (London time) on the business day following the date of this announcement. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018). On the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Bamburgh Capital Ltd, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

Singer Capital Advisory LLP, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

 

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