Begbies Regulatory News (BEG)

15 Jul 2005 15:29

Begbies Traynor Group PLC15 July 2005 15 July 2005 Begbies Traynor Group plc Placing of 6,200,000 new Ordinary Shares and 8,450,000 existing Ordinary Sharesat £1 per share Begbies Traynor Group plc ("BTG" or "the Group") (AIM: BEG) announces that ithas, today, arranged the placing of 6,200,000 new Ordinary Shares of 5 penceeach at £1 per share, raising £6 million after estimated expenses, which will beutilised to fund the continuing planned expansion of the Group. In response to significant excess demand and to improve the level of free floatand liquidity in the shares of BTG, Ric Traynor (Executive Chairman) and AndrewDick (Chief Operating Officer), acting jointly, have also placed 8,450,000existing Ordinary Shares at the same price. This follows a transfer by them of5,000,000 shares to the joint ownership of their wives on 12 July 2005,representing 6.9% of the enlarged issued share capital. As a result of the placings, the issued capital of BTG increases by 9.4% to72,209,376 Ordinary Shares of 5 pence each. The combined holdings of Ric Traynorand Andrew Dick (excluding the holdings of their wives) reduce from 68.9% to51.3% of the total issued capital and the free float increases from 16.8% to35.6%. The placing of new Ordinary Shares, which will rank parri passu in all respectsto existing shares, is conditional on their admission to trading on AIM, whichis expected to be on 21 July 2005. The placing was arranged as a result of significant institutional interest inBTG, following the announcement on 4 July 2005 of its maiden results to 30 April2005 and in the context of a number of potential acquisitions in respect ofwhich BTG is in various stages of discussion, in accordance with the statedobjectives of the Group. The most imminent of these, which is in the finalstages of negotiation, relates to an independent insolvency practice with anannual turnover of circa £3.5m. The new monies raised for the Group, added toexisting facilities, should mean that BTG is fully financed for all itscurrently anticipated acquisitions and organic growth plans. Teather & Greenwood Limited and Shore Capital & Corporate Limited jointlyarranged the placings, on behalf of BTG, Ric Traynor and Andrew Dick. Ric Traynor, Executive Chairman of Begbies Traynor Group plc, said: "We are pleased to welcome our new institutional shareholders, and weredelighted by the level of appetite for our shares. Begbies Traynor now has amplefunds to achieve its current expansion plans, which include making furtheracquisitions, coupled with continued organic growth." Dividend Payment The announcement by BTG on 13 July 2005, referred to its proposed dividenddeclaration in September 2005. In error, that announcement stated that theex-dividend date would be 9 September 2005; whereas that date is the Recorddate, with the shares becoming ex-dividend on Wednesday 7 September 2005. Enquiries, please contact: Ric Traynor/Graham McInnesExecutive Chairman/Finance DirectorBegbies Traynor Group plc0161 839 0900 Jeff Keating/Adam PollockCorporateFinance/SalesTeather &Greenwood020 7426 9000 Mike Sawbridge/John RitchieCorporate Finance/SalesShore Capital & Corporate Limited0151 600 3700 Neil Boom /Rosemary AcfieldGresham PR Ltd.020 7404 9000 Note to Editors About Begbies Traynor Group plc The Group specialises in business insolvency management and is becomingincreasingly active in the area of personal insolvency. It also offers servicesin corporate rescue and forensic investigation services and has entered thefield of corporate finance through the acquisition of MCF Corporate Finance. Inaddition, the Group recently acquired FDB International, an establishedcommercial investigation and security agency. The Group has grown to its current network of 26 nationwide offices ranging fromScotland to the South West of England, with over 275 operatives. The Companyintends to pursue a strategy of organic development, coupled with theacquisition of specialist knowledge of both individuals and firms, to furtherincrease its market share in its core services. The Directors believe that the Group is the UK's largest independent insolvency,corporate rescue and recovery specialist with clients ranging from majorinstitutions to individuals with business difficulties. The Office Network The Group operates with 60 licensed insolvency appointment takers, some 155 feeearning staff and 55 in support and administration. The Group operates from 26locations of which five are regional offices, a further ten are full offices andeleven are satellites. Business Activities The core business of the Group is the formal administration of insolvenciesincluding receiverships, liquidations, administrations, company voluntaryarrangements and business related personal insolvencies. The Group has extendedits activities into a range of consultancy services including corporate rescue,credit management, forensic and investigation services and corporate finance. END This information is provided by RNS The company news service from the London Stock Exchange