RNS Number:0071K
Biocare Solutions PLC
17 December 2007
Biocare Solutions plc
("Biocare" or the "Company" or the "Group")
Pre-close Trading statement
Biocare Solutions plc, the developer, manufacturer and vendor of effective natural household
cleaning and laundry
products, today issues a trading update ahead of its full year results ending 31 December
2007.
Production Facilities
As anticipated at the interim results issued in September, the Board is pleased to announce
that new production
facilities in southern Italy are now fully operational.
Following the transfer of the Company's operations into the new plant at Ferrandina and the
closure of manufacturing
facilities in Meda, close to Milan, overhead and production cost savings are expected which
will positively impact the
Company's performance as it moves into 2008.
The enhanced production capacity provides the company with a platform to expand commercial
activities both in Italy and
internationally.
Trading
The Company is pleased to announce the acquisition of a new Italian client who is a specialist
in the cleaning products
field. We estimate that, when we are supplying all their outlets, it will add Euro500,000 to
our annual sales.
In line with management expectations, after taking account of delays in commissioning the new
factory and consequent
lack of production capacity, the Company expects full year operating results for 2007 to be
similar to those of 2006.
Financing
The Board has continued to review the capital needed for expansion and the appropriate capital
structure for the Group
going forward.
RAB Special Situations (Master) Fund Limited ("RAB"), a substantial shareholder of Biocare,
which holds 35,040,000
ordinary shares representing 38.23 per cent of the issued share capital of the Company, has
agreed to extend its short
term facility by a further £300,000 pending discussions to restructure existing and any
further short term loans to the
Group and to replace these with a significantly lower-cost convertible loan. Other than this
facility the Company is
debt free which provides sufficient headroom for suitable bank funding which is expected to be
put in place during 2008
as production expands.
Corporate Structure
The Company has also reviewed its corporate structure to meet the needs of the business going
forward. To maximise the
international potential for the Company's range of all-natural cleaning products, Tony Higson
is taking up a new role
as International Commercial Director. Martin Shelley, who is fluent in Italian, assumes
responsibility for the Italian
operations. Stuart Anderson (previously non-executive) has agreed to become Executive Chairman
of Biocare.
Enquiries:
Biocare Solutions plc
Stuart Anderson 020 7448 5211
KBC Peel Hunt, Nominated Adviser and Broker 020 7418 8900
Richard Kauffer
Deon Veldtman
Financial PR 020 7354 0356
James Poole 07768 991 096
This information is provided by RNS
The company news service from the London Stock Exchange
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