Resources In Insurance Group PLC Related Party Loan (6029P)

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RNS Number : 6029P

Resources In Insurance Group PLC

03 October 2013

3 October 2013

RESOURCES IN INSURANCE GROUP PLC

("RiIG", the "Group" or the "Company")

Related Party Loan

Following the recent announcement of the Company's Final Results for the 15 month period ended 31 March 2013, and the subsequent signing of a 3 year contract for the Absolute Professional Talent (APT) division to provide recruitment and placement services to a leading Professional Insurance Services organisation, Resources in Insurance Group plc (RiIG), a leading provider of Claims Management and Consultancy Solutions to the UK Insurance Profession, today announces that it has secured a further related party loan.

In order to support the continued improvement in trading, which is primarily as a result of new business won, the Board has secured additional working capital via the provision of loan capital of GBP100,000 from a significant shareholder, Bob Morton via Hawk Investment Holdings Limited. The interest rate payable on the loan is 1 per cent. per month, payable monthly. The loan is repayable in full in October 2014. As Hawk Investment Holdings Limited is connected to Bob Morton, a substantial shareholder, the loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors, having consulted with the Company's nominated adviser, Zeus Capital, consider that the terms of the loan are fair and reasonable insofar as the Company's shareholders are concerned.

In recent months, the Directors have taken the view that to issue new shares to procure additional working capital would not be in the best interests of shareholders, given the low share price. Additional working capital has therefore been sourced via the provision of loan capital. Executive Chairman, John French, through Spread Trustee Company Limited on behalf of The French Settlement, has to date provided total loan capital of GBP251,500. Hawk Investment Holdings Limited, connected to Bob Morton, has now provided total loan capital of GBP385,000.

Commenting, Executive Chairman, John French said: "We are pleased at the positive progress being made in terms of recovery as a result of new business wins, and these are beginning to impact on the performance of the Group. As a result of these wins, we believe that there are opportunities in some areas of our business for both margin enhancement and cost savings, mainly due to economies of scale. I hope to be able to comment further at the forthcoming AGM scheduled for the 28th of October."

For further information:

 
Resources in Insurance Group plc 
 John French, Executive Chairman 
 www.riig.co.uk 
 
 Nominated Adviser/Joint Broker      [phone] 
Zeus Capital Limited 
Ross Andrews/Andrew Jones            [phone] 
 
  Joint Broker 
Peterhouse Capital Finance Limited 
Jon Levinson                         [phone] 
 

Financial PR

Yellow Jersey PR Limited

 
Dominic Barretto   [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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