RNS late Friday29 Jun 2013 12:23
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 £664,557 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 £1,650,000.
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 £1,650,000 (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 £500,000 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 £538,000. 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 £4.7 million and £22,000 respectively and as at the same date total assets and net assets amounted to £4.4 million and £383,000 respectively.
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