Trading update and current banking facilities

    RNS Number : 5577Z
  Myhome International PLC
  22 July 2008
   
    Embargoed for release at 7.00 a.m.

    22 July 2008

    Myhome International plc
    ("Myhome" or the "Company")
    Trading update and current banking facilities


    Third quarter trading update

    The Company's results for the third quarter of the financial year were in line with the Board's expectations. 50 new franchisees were
recruited in the quarter. The Board remains confident that the Company's performance in the quarter to 30 September 2008 will be in line
with its expectations.

    Bank facilities

    The Company is currently in constructive discussions with Lloyds TSB regarding the re-negotiation of its £8 million bank facility. These
discussions are being held as a result of the deteriorating economic outlook in the United Kingdom and the Company's reduced trading
expectations set out in the interim results announcement released on 30 June 2008, which has meant that the Company is in breach of some of
the covenants within the bank facility agreement. The bank is aware of these breaches but remains committed to a restructuring of the
facility.

    As a result of these discussions the Board and Lloyds TSB have concluded that it would be sensible and prudent for the Company to
significantly reduce the bank facility to a level more appropriate to the Company's current trading position. A number of options are being
explored to achieve this including an equity issue which may be at a realistic discount to the current share price. At the same time the
Company will seek to improve its working capital position. The Board is in preliminary discussions with some of its larger shareholders
about the possibility of participating in such an equity fundraising.

    Further announcements will be made in due course.

    Enquiries:

    Myhome International plc             01372 471573
    Jon Pither
    Russell O'Connell
    Neal Gossage

    Noble & Company Limited             020 7763 2200
Nick Naylor
Alastair Maclachlan


This information is provided by RNS
The company news service from the London Stock Exchange
 
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