Rns20 Apr 2011 10:32
20 April 2011
Eatonfield Group plc
("Eatonfield" or "the Group")
Working capital funding update
On 31 March 2011, the board of Eatonfield announced that the Group had sufficient working capital funding through to mid April 2011. On 11 April 2011, the board announced details of the proposed exchange of contracts for the sale of the Welsh sites and the proposed revised facilities with Royal Bank of Scotland plc ("RBS") to include a new £0.25 million working capital facility. The board is of the view that formal agreement of these matters is now imminent.
Eatonfield continues to defer payment of amounts due to certain of its senior lenders and trade creditors. On the basis that (i) the relevant lenders and trade creditors do not demand payment in the short-term and that Eatonfield continues to receive their support; and (ii) the proposed exchange of contracts for the sale of the Welsh sites takes place imminently, which will in turn provide the Group with access to the new £0.25 million RBS working capital facility, the board now expects that the Group's existing financial resources will provide it with sufficient working capital funding until early May 2011.
The board confirms that all of the Group's existing bank facilities remain available at the date of this announcement.
The Group has now also commenced presentations to potential investors, with a view to raising further equity to fund Eatonfield to the point where its contract housebuilding operation is forecast to start generating net positive cash flow later this year. The board is seeking to conclude this fundraising by early May 2011.
For further information please contact:
Eatonfield Group plc
Tel: +44 (0)1829 261 910
Brian Corfe (Executive Chairman)
Rob Lloyd (Group Chief Executive)
Duncan Syers (Group Finance Director)
Evolution Securities Limited
Tel: +44 (0)113 243 1619
Joanne Lake/Peter Steel
Optiva Securities Limited
Tel: +44 (0)203 137 1904
Jeremy King
Threadneedle Communications
Tel: +44 (0)207 653 9850
Graham Herring/John Coles