Contract Awarded and Working Capital Raised

 

TIDMSTBR TIDMEAGA 
 
RNS Number : 0376Z 
Southern Bear PLC 
15 September 2009 
 

15 September 2009 
Southern Bear Plc 
("Southern Bear" or the "Company") 
Significant 'eaga plc' Contract Award 
Further GBP250,000 working capital raised 
 
 
  *  BGC awarded eaga plc contract for the Warm Front 2 scheme 
  *  Contract increases the Company's services to eaga from four to 13 regional areas 
  *  Significant increase in BGC's sales revenue and profitability expected 
  *  Further approximately GBP250,000 working capital raised to finance the expansion 
  of Southern Bear & BGC 
 
 
 
Southern Bear plc, a holding Group focusing on investments in the support 
services, industrial and engineering sectors of the UK and Europe is delighted 
to announce that its wholly owned subsidiary, BGC Limited ("BGC"), has been 
successful in the eaga plc ("eaga") Invitation to Tender ("ITT") to provide 
contracting services for the Warm Front 2 scheme. 
 
 
BGC has provided its services to eaga since 2005, having been initially 
appointed to operate within four regional areas. Significantly, BGC has now been 
appointed to operate across 13 regional areas of the Midlands and North West and 
will be undertaking the following specialist works:  'Gas, Electrical, Oil & 
Solid Fuel Central Heating' and 'Hot Water Installations & Repairs'. 
 
 
Since 2005, the value of Warm Front works completed by BGC on behalf of eaga is 
in the region of GBP14.0 million. BGC's new contract award further increases the 
Company's services to eaga from four to 13 regional areas - which is expected to 
significantly increase the levels of sales revenue, along with the underlying 
profitability of the business. BGC's appointment is initially for one year with 
options to extend year-on-year, for a total contract period of four years. 
 
 
eaga holds the contract to deliver the GBP1.5 billion Warm Front programme in 
England, the cornerstone of Government's target to eliminate fuel poverty. The 
Government remains committed to tackling fuel poverty and has recently announced 
a further GBP800 million of investment providing finance to extend the Warm 
Front programme until 31st March 2011 with a provision of a further extension 
for 2 years beyond that point. 
 
 
Southern Bear also announces today it has raised an additional GBP249,984 
working capital through the issue of 13,888,000 shares at 1.8p per share in 
order to finance the expansion of various businesses of Southern Bear. 
Application is being made for the new ordinary shares to be admitted to trading 
on AIM with admission expected on 21 September 2009. 
 
 
The total number of shares now in issue is 734,589,625. 
 
 
Speaking today, Southern Bear's Chairman Jon Pither stated: 
 
 
"We are delighted that this new contract has been secured as it confirms BGC's 
continuing strong relationship with eaga.  Since becoming a contractor for eaga 
in 2005, BGC has enjoyed an increasing level of business.  Fuel poverty remains 
a critical issue with energy prices increasing, which creates strong, long term 
growth dynamics for the type of services that BGC provides. 
 
 
"BGC's contract award is the culmination of many months of intensive, thorough 
and detailed preparation by Group Executive Directors Steven Hancock and Mark 
Sims. My particular thanks must go to Steven and Mark, as the award of this 
prestigious contract is a true testament to their ongoing commitment and 
dedication to the growth of Southern Bear plc. 
"The additional working capital will help us finance and progress our expansion 
plans for Southern Bear and BGC." 
 
 
=-END-- 
 
 
For further information please contact: 
 
 
Southern Bear plc 
David Parsons 
Tel: [phone] 
 
 
Nominated Adviser: 
Grant Thornton UK LLP 
Gerry Beaney 
Tel: [phone] 
 
 
Broker: 
SVS Securities plc 
Ian Callaway 
Tel: [phone] 
 
 
Financial PR: 
Bishopsgate Communications 
Robyn Samuelson/Siobhra Murphy 
Tel: [phone] 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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