Thursday, 6 August 2009

Minorplanet seeks funding to maintain orbit

(By Anthony Miller – Thursday 6th August 2009 8:45am). After falling into a first-half loss presaged by its April profit warning (see Minorplanet hit by SME client credit squeeze), the AIM-listed vehicle tracking and fleet management hardware and software company launched a refinancing programme today (see here) aiming to raise over £3m in a placing and open offer. The placing is to shore up working capital, the open offer to give room for manoeuvre.

Minorplanet is another ‘Little British Battler’ that punches above its weight overseas, with just under half its £23m 2008 revenues coming from the UK. Unfortunately its key European markets were not profitable over the year, and Australasia (30% of revenues) went into half-time loss. To add insult to injury, Minorplanet is under potential litigation in Spain. The company is still in loss and CEO Terry Donovan warned that if the refinancing is not successful the company would almost certainly go under. Any bidders out there?

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