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Ultimate Finance Group / Renovo

  • BY: Andrew Hore |
  • POSTED: 17/07/2013 |

Cash shell Renovo Group has approached trade finance provider Ultimate Finance Group about a potential bid.

The Ultimate share price rose 2.5p to 27p, which values Ultimate at £20.1m. Ultimate floated in June 2002 at a flotation price of 24p. The founders were issued shares at 5p each. The remaining founder is chief executive Jeremy Coombes, who acquired 700,000 shares at that time..

Renovo acquired a 12.77% stake in Ultimate through a placing at 18.5p a share at the beginning of this year.

Renovo, which used to develop scar treatments, has appointed Altium as its nominated adviser. Panmure Gordon remains as broker.

Manchester-based Renovo ended development of it scar treatments following disappointing clinical trials and it moved from the Main Market to Aim in October 2011.The Prevascar assets were sold for $660,000 to Targenics Inc at the end of 2012, the final $160,000 of which was received in June.

At the beginning of 2013, an investing policy of seeking an acquisition in the financial services sector was passed by shareholders. Renovo invested £1.7m in the placing by Ultimate. Some of the company’s cash has been spent on share buy backs and this has led to Henderson Global’s stake increasing to nearly 36 per cent. The cost base is more than covered by finance income and at the end of March 2013 there was cash of £26.4m. At 17.25p a share, down 1.5p on the news, Renovo is valued at £25.8m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2013_46.pdf

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