AVA.L Regulatory News (AVA)

28 Jun 2006 15:50

Avanti Capital PLC28 June 2006 Avanti Capital plc Full Year Pre-Close Update Avanti Capital plc ("the Company") the private equity company is updating themarket today prior to its year-end on 30 June 2006. Po Na Na - Barvest Limited Following the management changes announced in March, the new management team hasundertaken a strategic review of the business and, as a result, in conjunctionwith the Company, a subsequent restructuring of the business by way of areceivership. A new company, Barclub Trading Limited, formed by the management team and theCompany has today acquired 18 bars and clubs from Barvest for a maximumconsideration of £8.25m, which has been distributed to the Company insatisfaction of the significant majority of Barvest's secured debt to theCompany. As part of these arrangements and included in the £8.25m, the Companyhas taken over Barclay's position as first charge holder for £2.5m. The EBITDA (before head office costs) made by the 18 bars and clubs beingacquired for the year ended 30 June 2005 was £2.35m and in the year ending 30June 2006, is forecast to produce a EBITDA (before head office costs) notmaterially different to this. As a result of this transaction, the Company will hold 60% of the equity of anew company called Barclub Limited (which wholly owns Barclub Trading) whilstmanagement will hold 40%. Avanti will be the first ranking secured lender toBarclub Trading in the sum of £8.25m. Interest will accrue on this amount at therate of 10% per annum until maturity on 31 August 2009. mBlox mblox, the world's largest mobile transaction network, continues its progress inline with its internal plans and forecasts. Following the February 2006 US$25m fund-raising, mBlox has continued to cementits market leading position. The Company continues to be excited by theprospects for this market leading business. Medcenter Medcenter improves communications between the pharmaceutical industry and theprescribing and dispensing community. It has budgeted in the 2006 year to increase its revenues by 300%, fuelled by avery strong demand for its products from its customer base of the world'slargest pharmaceutical companies and has performed in line with its internalplans and forecasts in the current year. Espresso Broadband Espresso provides educational packages to primary schools in the UK. Thebusiness has reached critical mass and is profitable and is expected to enjoyhigh operating leverage from now on. Wordmap Wordmap is a software company that sells taxonomy software primarily to localauthorities and the pharmaceutical industry. Wordmap is continuing its salesdrive with a view to establishing a market leading position in its sector. Legacy Portfolio The Company reiterates its policy of disposing of its investments in the legacyportfolio at the earliest possible time. The book value of the legacy portfoliois not material. Contact:Avanti Capital plc 020 7070 7070Julian Fellerman , Joint CEORichard Kleiner, Joint CEO Notes to Editors Avanti Capital is a private equity company. Unlike conventional close endedprivate equity funds, Avanti has no set investment timetable and focuses on thequality of individual investments rather than a portfolio strategy-led highquantity investment ethic. Avanti has an executive team with extensive experience of investing in andrunning companies across a wide range of sectors. The professional backgroundsand business experience of the executive team enable Avanti to see value insituations, which may be unattractive to the other investors. The presence ofstructural issues within business is seen as an opportunity to create more valuefrom any particular investment. Avanti's approach to investments is both rigorous and discerning and reflectsthe fact that it is seeking exceptional opportunities to invest in businesseswith high quality management teams and where Avanti's own management can feeltruly passionate about the business's prospects. Avanti's investment criteria are as follows: - • European businesses. • Strong management with a proven track record. • Wide ranging businesses, which show the potential for material growth in the short to medium term, including consumer brands, leisure, retail and specialist support services. • Undervalued businesses or assets in both the public and private arena. • Where appropriate, the company will seek to raise debt finance to part fund any investment. Avanti Capital is listed on the Alternative Investment Market of the LondonStock Exchange and therefore offers shareholders participation in private equitydeals through a quoted vehicle. This information is provided by RNS The company news service from the London Stock Exchange