Unlisted Securities Market-quoted microfilm equipment manufacturer Imtec Group Plc has announced a recapitalisation and financial restructuring programme in the wake of a pre-tax deficit of UKP1.6m in the year to June 30. The losses were the fourth in a row for the Stanmore, Middlesex company and were blamed on cost and time overruns in developing […]
Unlisted Securities Market-quoted microfilm equipment manufacturer Imtec Group Plc has announced a recapitalisation and financial restructuring programme in the wake of a pre-tax deficit of UKP1.6m in the year to June 30. The losses were the fourth in a row for the Stanmore, Middlesex company and were blamed on cost and time overruns in developing new products leading to a slump in turnover. Coupled with the cost of rationalising operations Imtec has seen a substantial reduction in its capital base and the need for a cash injection. The deal will treble Imtec’s issued capital: British & Commonwealth Investors will subscribe UKP4.3m in cash for 107.7m new preferred ordinary shares in Imtec at a price of 4p per share. Existing shareholders are invited to subscribe UKP890,000 for 22.25m new ordinary shares at a price of 4p per share, on the basis of one new ordinary share for every three existing ordinary shares. While Bolton House Investments Plc, which specialises in small company finance, will accept the conversion of UKP1.8m worth of debt into 18m new shares. Following the financial restructuring British & Commonwealth will hold between 51% and 61% of the enlarged share capital, depending on the extent to which existing shareholders take up their entitlements under the open offer. The company says the proposals will result in the raising of UKP4.7m in cash, after deduction of expenses. Of this UKP650,000 will be used to repay short-term loans and the balance will be used to finance the group’s operations, particularly the integration of Laser-Scan Laboratories Ltd, acquired last January. The restructuring also involves senior management changes. Brian Lacey, former managing director of Monotype International and a specialist in industrial psychology is to take over as chief executive. Roy Barber, who until 1985 was finance director of Amec Plc, will join as non-executive director; Richard Wevill of British & Commonwealth Ventures will join the board as a non-executive director; and Peter Woodsford, managing director of Laser-Scan, joins as technical director. Why did British & Commonwealth invest in troubled Imtec? It says it has great hopes for recently acquired Laser Scan’s product range, and have previously enjoyed a profitable relationship with the new managing director when he was at Monotype.