LONDON (Alliance News) - APC Technology Group PLC Tuesday said it has raised GBP1.45 million before expenses in a share placing, funds it will use for additional working capital and to support further contract roll outs, following the recent recommencement of a contract with Wm Morrison Supermarkets PLC.
The technology and services company said it placed 6.6 million new share at a price of 22 pence per share to both new and existing institutional investors. The shares closed Monday at 23.00p.
APC said the funds will strengthen its working capital and deal with the level of new orders currently being received, as well as for expected growth.
Last month, APC said posted a drop in pretax profit and revenue for its financial year to end-August, citing the fall in revenue due to Morrisons, a major customer, reducing its budget at the beginning of 2014. Shipments were suspended to Morrisons in April, and whilst the company was building its pipeline, APC wasn't able to bring those customers in to cover the shortfall from the loss of Morrisons.
APC said Tuesday that orders have recommenced from Wm Morrisons, having received the first new orders from Morrisons for the next phase of their LED lighting roll out.
"Although the total value of this next phase of Wm Morrisons orders is yet to be fully established, the orders received thus far are significant and give the board confidence that expectations in the market for growth in financial year 2015 will be met," the company said Tuesday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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