23 Aug 2010 07:00
| Press Release | 23 August 2010 |
Hightex Group plc
("Hightex" or the "Company")
Bonding and Supplier Financing Arrangement
Hightex Group plc (AIM:HTIG), a leading designer and installer of large membrane roofs and façades worldwide, is delighted to announce that it has arranged an insurance solution to its requirement to provide bonds. This will greatly increase the flexibility of the Company's working capital allowing it to take on more projects and thus aid further growth.
A feature of the sub-contracting work which Hightex undertakes is the requirement to provide advance payment, performance and warranty bonds to its ultimate customer on each contract. Up to now, these bonds have been provided by banks and have been secured by Hightex by placing substantial amounts of cash into blocked deposit accounts for the duration of the life of the bond. This has greatly restricted the flexibility of the Company's working capital.
An insurance solution has been arranged with Coface (Compagnie Française d'Assurance pour le Commerce Extérieur) the international financial services company. This will enable Hightex to release cash from blocked deposit accounts into general working capital resources, providing a significant improvement in operational flexibility. In addition, in order to achieve optimum purchasing conditions, Hightex has also concluded a separate agreement whereby Coface will finance all substantial costs associated with material supplies for future contracts. This will further increase working capital flexibility.
Charles DesForges, Chairman of Hightex, said: "I am delighted that satisfactory terms have been agreed with Coface to provide solutions for bonding and working capital constraints. These bonds, which Hightex must continue to provide, will in future be secured through insurance instead of placing cash into blocked deposit accounts. For Hightex the availability of this insurance and flexibility of working capital will expand the Company's capacityto handle its growing volume of work.
- Ends -
For further information:
| Hightex Group plc |
|
| Charles DesForges, Chairman | Tel: +44 (0) 20 7603 1515 |
| Charles Sebag-Montefiore, Non-Executive Director | www.hightexworld.com |
| FinnCap |
|
| Geoff Nash, Corporate Finance | Tel: +44 (0) 20 7600 1658 |
| Simon Starr, Broking | www.finncapitalmarkets.com |
Media enquiries
| Hudson Sandler |
|
| Nathan Field | Tel: +44 (0) 20 7796 4133 |
| nfield@hudsonsandler.com | www.hudsonsandler.com |
Notes to Editors
Hightex Group is a specialist provider of large area architectural membranes for roofing and façade structures. The membranes are typically used in roofs and façades for sporting stadia and arenas; airport terminals; train stations; shopping malls and other buildings. This type of structure is a competitive alternative to glass as it is lighter and safer as well as being flexible to create complex shapes and it can span larger areas. Hightex uses environmentally friendly materials and is focussed on innovative technology and coatings, which help to reduce a building's energy costs.
Hightex, one of only two international companies to design and install these structures worldwide, has been involved in the construction of a number of very high profile buildings including The Cape Town Stadium and Soccer City Stadium in Johannesburg, used in the FIFA 2010 World Cup, the Wimbledon Centre Court retractable roof, the roof of the Suvarnabhumi International Airport in Bangkok and the grandstand roof at Ascot Race Course.
The global market for membrane structures is estimated by the Hightex directors to approach around €350 million a year, and is growing as a result of the demand for energy efficient buildings and the popularity and cyclical nature of sporting events, which give rise to a continuing need for upgraded and new buildings and stadia.
Headquartered in Rimsting, Germany the Group employs approximately 55 people and is listed on the AIM market of the London Stock Exchange (LSE: HTIG). Further information on Hightex Group plc can be found at www.hightexworld.com