MGP.L Regulatory News (MGP)

11 Jan 2007 10:09

Mercury Group PLC11 January 2007 11 January 2007 Mercury Group plc ("Mercury" or the "Company") EGM Statement At the Extraordinary General Meeting of Mercury to be held at 10.00 a.m. thismorning the Chairman of the Company will make the following statement: "In the circular sent to shareholders on 15 December 2006, the SeniorIndependent Director stated that the board anticipated that the results for theyear ended 30 September 2006 would show material losses and that the Group wasperforming below expectations. I can report that trading of the Mercury Groupfor the first quarter of the current financial year was marginally ahead ofmanagement expectations due to a substantial one-off project being invoiced inlate December. The Directors of Mercury, in conjunction with their advisers, consideredcarefully the requirement for further equity capital before determining theamount to be sought from shareholders under the current placing and open offer.The directors consider that, in order to create shareholder value, furtherinvestment in the group's core business, Smith Melzack Pepper Angliss Limited("SMPA"), is necessary to enable it to grow to a critical mass. The funds beingraised from the placing and open offer will be used for the following purposes: - to pay overdue creditors of the Group; - to recruit additional personnel to increase income and improve management succession; - to invest and develop the SMPA infrastructure and brand name; - to provide an adequate headroom to satisfy AIM Rules; and - to pay the costs of the fund raising. I would like to reemphasise a statement made in the circular to shareholders,the essence of which is that should the proposals not be approved byshareholders, trading in the Company's shares will be suspended on AIM and theDirectors would have to seek financial advice from an insolvency practitionerregarding their obligations." For enquiries: Mercury Group plc 020 7393 4001Walter Goldsmith (non-executive chairman) John East & Partners Limited John East/David Worlidge 020 7628 2200 College Hill Associates 020 7457 2020Matthew Smallwood This information is provided by RNS The company news service from the London Stock Exchange