Water Hall Group Plc New Investment (1993I)

TIDMWTH

RNS Number : 1993I

Water Hall Group Plc

28 June 2013

For immediate release

28 June 2013

Water Hall Group plc

("Water Hall" or the "Company")

New Investment

The Board of Water Hall announces that it has entered into a debt purchase agreement (the "Debt Purchase Agreement") with Lloyds TSB Commercial Finance Limited and Bank of Scotland Plc (the "Banks") pursuant to which the Banks have assigned to Water Hall their full rights under the working capital facility letters and the receivables finance agreement provided by the Banks to Petards Group plc (the "Petards Working Capital Facility") together with the assignment of the Banks' security to Water Hall. The rate of interest payable under the Petards Working Capital Facility on any drawings is charged at the annual rate of 4 per cent. over the Bank of Scotland base rate. Petards Group plc ("Petards") is a UK-based AIM-traded company whose activities embrace the provision of security and surveillance systems to the transport sector, in particular railways, emergency services sector, specifically the police and the UK Ministry of Defence. Water Hall has an existing 29.99 per cent. interest in Petards.

The total consideration paid by Water Hall to the Banks for the amount currently owing by Petards under the Petards Working Capital Facility and other associated trading and transaction costs was GBP664,557 in cash, which has been funded from Water Hall's existing cash balances.

The Petards Working Capital Facility, was secured by a number of debentures and charges over the assets and business of Petards and its subsidiaries, comprising Petards Limited and Petards Joyce-Loebl Limited, had a limit of GBP1,650,000.

The Board of Water Hall is now in active discussions with Petards with a view to Water Hall providing Petards with a new working capital facility (the "New Facility") of up to GBP1,650,000 (including the amount acquired from the Banks) on substantially the same terms and security as the Petards Working Capital Facility. A further announcement will be made in due course.

In addition to its liquid resources of approximately GBP500,000 and the amounts due from Petards arising from this agreement, Water Hall's sole remaining equity investment is its 29.99 per cent. interest in Petards, which as at close of business on 27 June 2013, was valued at GBP538,000. For the six months ended 30 June 2012, the date of the last published results, Petards's unaudited turnover and profit before tax amounted to GBP4.7 million and GBP22,000 respectively and as at the same date total assets and net assets amounted to GBP4.4 million and GBP383,000 respectively.

Enquiries:

 
Water Hall Group Plc                 www.waterhallgroupplc.com 
Raschid Abdullah                     Tel: [phone] 
Beaumont Cornish Limited (Nominated  Tel: [phone] 
 Adviser and Broker) 
Roland Cornish / Michael Cornish 
 

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

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