News blog
Westminster Group
- BY: Andrew Hore |
- POSTED: 13/07/2012 |
Security systems and products supplier Westminster Group has raised £1.4m net from the issue of convertible loan notes, which will help to reduce finance charges.
The new investors are from Asia and can help Westminster gain business on that continent. The annual interest rate is 8% and the conversion price is 27.5p. The convertible lasts for five years but may be redeemed at Westminster’s discretion after one year.
The repayment of the £1m loan from Synergy Capital will save £800,000 in interest charges and fees between now and the end of June 2014. Synergy’s convertible loan notes have a coupon of 10% a year and a management fee which started at 5% of capital and increases by 2.5 percentage points every quarter. This charge was 12.5% at the end of 2011.
In 2011, Westminster more than halved its loss from £4.22m to £1.98m as revenues jumped from £3.8m to £10.1m.
Net debt was £630,000 at the end of 2011 but that was prior to a £500,000 fundraising in April as well as the latest placing.
At 29.12p a share, Westminster is valued at £9.49m.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2012_33.pdf
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