7digital Group plc
Subscription to raise £1.88 million
7digital Group plc (AIM:7dig) ("7digital", the "Company" or together with its subsidiary undertakings, the "Group") announces that it has conditionally raised gross proceeds of £1.88 million through a subscription of 937,900,000 new ordinary shares of 0.01 pence each ("Ordinary Shares"), (the "Subscription Shares") at a price of 0.2 pence per share (the "Subsciption Price") with certain new and existing investors (the "Subscription") and additional £1.0 million in intended future facility.
From today's RNS
Robust private growth of 4.1% sustained from H2 18.
Positive momentum on quality improvements with new Manchester hospital rated Outstanding. 81% of sites rated Good, Outstanding or equivalent (up from 74% in H1 18, 79% at FY18).
Long term pricing agreements signed with AXA PPP Healthcare and Bupa supporting our strategic focus on private patients
Digital strategy implementation underway with further rollout of consultant online booking, a successful pilot launch of the MySpire patient portal and a new Consultant App.
Purpose, our new cultural initiative to raise team engagement and our patient focus, launched across all hospitals and central functions
Group financial performance
3.4% revenue growth to £491.6m (2018: £475.6m)
Growth across all three payor groups: PMI sales rose 5.1%, Self-pay +1.4% and NHS +2.5%
Operating Profit growth to £51.0m (2018: £37.2m)
Net bank debt(4) lowered, with covenant leverage at 3.3x EBITDA (3.3x at end Dec 18, 3.0x at end June 18) versus limit of 4.0x
An interim dividend of 1.3 pence per ordinary share has been approved by the Board.
Justin Ash, Chief Executive Officer of Spire Healthcare, said: "This was a good performance with clear signs of our strategic and operational initiatives bearing fruit. We promised 2019 would be a year of stabilisation with revenue growth, continued quality improvement, cash generation and net debt reduction. All have been achieved in H1, with good operating profit performance.
The tone of the RNS suggests that they were taken by surprise. Yet...
1) 'Voluntary Administration' meaning is: A mechanism for achieving these aims is a deed of company arrangement. A voluntary administrator is usually appointed by a company's directors, after they decide that the company is insolvent or likely to become insolvent.
2) Section 436C(1) A person who is entitled to enforce a security interest in the whole, or substantially the whole, of a company’s property may by writing appoint an administrator of the company if the security interest has become, and is still, enforceable.
Statement Regarding Recent Press Speculation and Temporary Suspension of Trading
The Directors of eve Sleep Plc (AIM:EVE), a direct to consumer sleep wellness brand operating in the UK, Ireland and France, have noted the recent press speculation regarding the Company.
The Company confirms that it is in very early stage discussions regarding the potential merger of Simba Ltd, ("Simba") with eve, to be structured by way of the acquisition of Simba by eve (the "Potential Transaction"). There can be no certainty that the Potential Transaction will proceed or certainty as to the terms of the Potential Transaction.
If it proceeds, the Potential Transaction may constitute a reverse takeover under the AIM Rules for Companies and if so would require the publication of an admission document in respect of eve as enlarged by the acquisition and the consent of eve shareholders in a general meeting. A further announcement will be made in due course once the Company and its advisers have analysed whether the Potential Transaction is a reverse takeover pursuant to the AIM Rules for Companies.
The Company is not currently in a position to comply with the requirements of AIM Rule 14 insofar as publication of an admission document and convening of a general meeting are concerned as discussions are at a very early stage and due diligence has not been completed. In accordance with the AIM Rules for Companies, the Company has requested that its securities are immediately and temporarily suspended from trading on AIM until such time as either the Company publishes an admission document, discussions with respect to the Potential Transaction have ceased or it has been concluded that the Potential Transaction is not a reverse takeover. The Company will update shareholders with further information, as appropriate, in due course.
Jon Lewis, Chief Executive Officer, said:
"Capita is now in the second year of a multi-year transformation and we remain on track to hit the targets we set in 2018
"Having addressed the balance sheet and made disposals last year, we have continued to strengthen the business in 2019. We are beginning to see the benefits from: strengthening our functions; changing the culture and enhancing governance; improving relationships with our clients; recruiting significant talent to key roles; and investing in people and new client propositions.
"We have made significant progress in a short period of time. There is still much work to do but the foundations we are laying now will put us in a position to succeed and grow. There is huge potential for our business as companies invest more in digital transformation. With Capita’s credentials and client-base, the long-term opportunity for growth is significant."
Capita's financial outlook remains unchanged.
Capita is in the second year of a multi-year transformation and the successful delivery of this programme remains a key focus area for the Group. We continue to expect profit before tax1 to be between £265m and £295m and net finance costs to be in the region of £40m in 2019, before the adoption of IFRS 162. We expect our net debt to EBITDA ratio to be in the top half of our stated range of 1.0 times to 2.0 times before adoption of IFRS 16.
We are on track to deliver our 2020 targets of £175m cost savings, double-digit operating profit margins1 and at least £200m of sustainable annual free cash flow, before exceptional and restructuring charges, additional pension contributions and the adoption of IFRS 16.
7digital Group Plc (AIM: 7DIG) announces that at today's AGM, the Company will give the following update:
"Having successfully completed the subscription announced on 7 June 2019 and with the newly constituted Board now in place, we are confident that all resolutions put forward today will be passed.
"We can confirm that our second stage financing plans are well underway, and we should be in a position to confirm the fundraising in the near term.
"Upon completion of the fundraising, the Board believes that the Company's funding position should be secured, positioning it well to execute on our stated strategy to lead the Company to profitability."
Chief Executive, Stephen Blyth commented, "We are disappointed to be below our profit targets for this year, however, critically customer demand for our services remains strong reflected in our continued sales growth which, together with the investments we have made across the business, particularly into information technology makes us confident in the Group's future growth prospects for 2020 and beyond."
Hi - Can anyone point me in the right direction regarding the Portage shares I now hold and where I can trade these please?When asking Interactive Investors, this was their response: "There will not be a certificate sent as we do not offer a market for this to be traded on. You can possibly electronically transfer this asset to another provider, however, we would not be able to offer any advice in regards to which broker specifically. I apologise for any inconvenience."Thanks for any advice!Casa