ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

SAG Science Group Plc

410.00
3.00 (0.74%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Science Group Plc LSE:SAG London Ordinary Share GB00B39GTJ17 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  3.00 0.74% 410.00 400.00 420.00 410.00 407.00 407.00 31,634 10:08:38
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Business Consulting Svcs,nec 98.82M 10.56M 0.2322 17.66 186.38M

Science Group PLC New 10 Year Bank Facilities (0022K)

16/09/2016 7:00am

UK Regulatory


Science (LSE:SAG)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Science Charts.

TIDMSAG

RNS Number : 0022K

Science Group PLC

16 September 2016

16 September 2016

Science Group plc

New 10 Year Bank Facilities

Following the 2015 acquisitions and the purchase of the additional freehold property at Great Burgh, Epsom, the Board of Science Group plc (the 'Group') has been reviewing the Group's capital structure. With significant freehold property assets and the unprecedented current low interest rate environment, the Board concluded that a potential increase in both the amount and term of the Group's debt could benefit long term planning and corporate strategy implementation, particularly if this could be achieved without a material increase in the Group's financing risk profile.

Bank negotiations have now been successfully concluded and the Board has agreed a new 10 year fixed term loan of GBP15 million. Phased interest rate swaps will fully hedge the loan resulting in a 10-year fixed effective interest rate of approximately 3.4%, comprising a margin over 3 month LIBOR and the cost of the swap instruments to fix the interest rate over the period. (For comparison, the effective interest rate on the 5-year term loan, which was scheduled to expire in 2018, is approximately 3.9%. This loan has been repaid.) This increase in loan value and extended loan term enables the benefit from the current attractive financing climate to be sustained into the future.

The new term loan has no operating covenants as long as the Group net bank debt is less than GBP10 million. If this threshold is crossed, two conditions apply: a financial covenant, measured half-yearly on a 12 month rolling basis, such that annual EBITDA must exceed 1.25 times annual debt servicing (capital and interest); and a security covenant whereby the loan to value ("LTV") ratio of the securitised properties must remain below 75%. If either of these conditions is breached, a remedy period of 6 months is provided, during which time the EBITDA or LTV condition can be remedied or the net bank debt can be reduced to less than GBP10 million.

The repayment profile of the loan is GBP1 million per annum over the term with the remaining GBP5 million repaid on expiry of the loan. One-off costs of approximately GBP0.3 million will be incurred arising from cancellation of the prior loan and associated swap, together with arrangement and legal fees associated with the new loan.

In summary, the Group's freehold properties provide a far more cost-effective and more flexible business operating model compared to a fully repairing leasehold. Securing longer term debt against these freehold property assets provides an attractive capital structure without onerous operating covenants. Through this asset-backed financing model, the new 10 year term loan provides a fixed, low cost of capital which should support the Group strategy and enable the Board to make medium term investment and capital allocation decisions.

Background

Science Group plc owns freehold property assets with a carrying value of GBP20.9 million at 31 December 2015. At 30 June 2016, the Group had gross cash of GBP17.2 million and net funds of GBP9.9 million. The Group's banking facilities were renewed on a 5 year term in 2013 with GBP7.3 million outstanding at 30 June 2016. Since that time, as previously announced, the Group has undertaken a further share buy-back programme and has paid the cash settlement for waived share options, at a total net cash outflow of GBP2.3 million. At 31 August 2016, the number of shares, excluding treasury shares, in issue was 39,973,795 and the Group had approximately 1.8 million share options outstanding, of which 1.2 million are unvested.

Contacts:

 
 Science Group plc 
 Martyn Ratcliffe, Chairman          Tel: +44 (0) 1223 
                                               875 200 
 Rebecca Hemsted, Finance Director 
 
 
 Numis Securities Limited 
 Nominated Adviser: Simon Willis   Tel: +44 (0) 20 
  / Paul Gillam                          7260 1000 
 Corporate Broking: Michael 
  Burke 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCLLFIDAEIELIR

(END) Dow Jones Newswires

September 16, 2016 02:00 ET (06:00 GMT)

1 Year Science Chart

1 Year Science Chart

1 Month Science Chart

1 Month Science Chart

Your Recent History

Delayed Upgrade Clock