News

Telematics provider Minorplanet Systems is looking to raise £3.25m to address its "current working capital difficulties".

The company, based in Leeds, says the package includes a £1.15m placing, as well as an open offer of up to £2.1m, both at 30p per new share.

Before this happens, there will be a share consolidation, with every 20 shares consolidated into one, which will create up to 10.8 million new shares.

Minorplanet  has also negotiated:

• Block discount loan facilities with Siemens and ING
• The conversion of its existing bank overdraft facility to an Enterprise Finance Guarantee Loan (EFGL)
•  An agreement with HM Revenue and Customs (HMRC) in respect of sums currently due and owing.

Terry Donovan, Minorplanet chief executive, says the medium-term prospects of the company "remain healthy" and it should be well positioned to take advantage of the upturn "when it happens".

He adds: "The refinancing will allow us to ride the current economic storm and continue to build a platform for growth, targeting the large corporate sector as well as servicing our traditional SME customer base."

Earlier this year, Minorplanet announced a pre-tax loss  of £2.5m for the six months leading up to February 2009, compared with a profit of £300,000 for the same period in 2008.

It also posted a turnover of £8.8m, down 22% on the same period last year, and has cut 35 staff since November 2008.