Healthcare Enterprise Group plc (AIM: HCEG, “HCEG”, the “Group”, the “Company”), the international healthcare products group, today reports results for the six months ended 31 August 2006, a proposed £2.0m cash placing and a Board change. The Group is also amending its warrant terms and is granting options to members of the management team.
Interim highlights
- Turnover from continuing operations down 12% to £7.6m (2005: £8.6m)
- Net operating expenses reduced 30% to £4.0m (2005: £5.7m
- Operating loss before exceptional items reduced by 57% to £0.95m (2005: Loss £2.1m)
- Net loss for the period was £0.1m (2005: Loss £2.3m)
- Loss per share 0.05p (2005: Loss 1.5p)
Placing
- £2.0 million cash placing to provide additional working capital
- Three Directors have subscribed for 3.3 million shares in the Placing
Directorate change
Gordon Wood has resigned from the Board and left the Group
Mark Tompkins, Group Chairman, said:
“We have cut £1.7m in costs, slimmed down inventory and receivables by £4.9m, restructured all operations and cut back unnecessary capital expenditure. We have reduced losses significantly at HSS, our UK operating business. In our Brands business, sales of Ebiox have improved and we have made significant progress in our efforts to monetise Optiscope. We are in a better position to deliver profitable growth in the next financial year.
“Whilst there is a lot more work required in terms of cost reduction and exploiting the Group’s assets and businesses, the Group should now be stabilised. However, to strengthen our balance sheet for ongoing restructuring and to maintain our current investments, the Group has conditionally raised £2.0m from institutional investors.
“Overall we are more confident about the prospects for the Group with continued recovery at HSS, further progress being made on Ebiox sales and the initial responses to Optiscope prototypes continuing to be encouraging.”
Enquiries:
Healthcare Enterprise Group PLC
Mark Tompkins, Chairman
Lyndon Gaborit, Executive Deputy Chairman
020 7351 7500
Numis
Bruce Garrow
020 7776 1500
College Hill
Adrian Duffield
Corinna Dorward
020 7457 2020
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