(Alliance News) - S-Ventures PLC on Wednesday said it has commenced a GBP2.5 million fundraise and expects to report a substantial revenue increase for its latest financial year.
The Surrey, England-based investor in natural, wellness and food tech brands said it has started a fundraising process to garner at least GBP2.5 million.
If S-Ventures can raise the full amount, it intends to use half to support working capital requirements necessitated by various factors like higher interest costs. The other half will fund deferred consideration related to S-Ventures's acquisition of gluten-free food manufacturer Juvela in December last year.
S-Ventures said it is reviewing a range of equity and debt capital sources to support the fundraise, which it announced "to garner maximum attention due to the liquidity for small-cap equities such as S-Ventures being exceptionally low."
The firm's current market cap is GBP7.7 million.
For the year that ended on September 30, S-Ventures expects total gross revenue of at GBP16.9 million, up from GBP8.6 million the year before. S-Ventures said much of this increase is due to a GBP6.9 million contribution from Juvela.
S-Ventures said it is strategically focusing on streamlining its operations going forward, combining key operational elements to deliver substantial cost savings.
"This approach underscores our commitment to delivering sustainable growth whilst maintaining the highest standards of product quality and customer service," the company said.
S-Ventures shares were flat at 5.85 pence in London on Wednesday afternoon.
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.