12 Dec 2012 12:00
Billing Services Group Limited
('BSG' or the 'Company')
Declaration of Dividend
The Company announces that it has today declared a dividend of $2.8 million, or $0.01 per common share, of par value $0.59446. The dividend will be paid by December 31, 2012 to shareholders on the register at close of business on December 21, 2012. The dividend will be paid in pounds sterling at an exchange rate of £1.00 per $1.61, being the rate at which the Company effected the exchange on the business day immediately preceding the date of this announcement. The common shares will be marked ex-dividend on December 19, 2012.
The dividend will be funded from the proceeds of a short term loan of $2.8 million from the Company's existing bank group, led by Texas Capital Bank. The Company expects to repay this loan, along with the $3.5 million loan used to acquire Connection Services Holdings Limited ("CSL"), during the first quarter of 2013. The amortization payments on the Company's existing facility with Texas Capital Bank remain unchanged and the Company will make its scheduled amortization payment of $2.4 million on December 31, 2012.
Norm Phipps, the Company's CEO, said "On behalf of the Board, I am delighted we are able to make this distribution to our shareholders. In what has been a difficult year, we are grateful to our lenders for their continued support and confidence in our business and management team."
The Company confirms that current trading remains in line with its previous guidance, and expects to record EBITDA of $16.5 million to $17.5 million prior to losses of approximately $0.6 million incurred by CSL during the year ending December 31, 2012.
Inquiries:
Billing Services Group Limited +1 210 949 7000
Norm Phipps
finnCap Limited +44 (0)20 7220 0500
Stuart Andrews/Henrik Persson
BSG Media Relations +1 210 326 8992
Leslie Komet Ausburn
About BSG:
BSG is headquartered in San Antonio, Texas, USA and traded on the London Stock Exchange (AIM: BILL). For more information on BSG, visit www.bsgclearing.com.