13 Aug 2010 07:00
ILX Group PLC
("ILX" or the "Group")
Dividend and Bank Facilities
ILX Group plc (AiM: ILX), the AIM quoted provider of e-learning software and business training, announces that it is in discussions with its lending bank with regard to the provision of revised banking facilities. Whilst current trading remains strong and substantially ahead of last year the Board, following discussions with its advisers, have decided to cancel the proposed dividend payment in order to fund the international growth of the business.
In the UK, although we have seen a number of customers taking longer to pay, the Group has not as yet had any indication that the recent public sector cuts will have a significant effect this year. However the Group's current banking facilities, in particular the confidential invoice finance facility, cannot support the increasing international growth.
In the context of this the Board has decided to cancel its proposed dividend for the 2009/10 financial year, in order to accelerate debt repayment this year and to optimise investment in the business.
Revised bank facilities have been negotiated and indicative terms provided by the bank. These comprise both enlarged facilities and a slower capital repayment schedule. These facilities, which are expected to be in place by the end of September, will provide the Group with the additional working capital and more appropriate structure required to capitalise on the increasing opportunities within the Group for growth, particularly overseas.
The Board continues to expect the year's trading to be in line with market expectations and expects to resume dividend payments, at least at the current level, within 12 months.
Ken Scott, Chief Executive, ILX Group plc commented:
"The current economic climate combined with our fast international growth makes it prudent for the Group to strengthen its balance sheet. While disappointing to cancel the dividend, this refinancing will help to secure the financial strength of the Group over our next phase of growth.
"We remain optimistic and excited regarding the prospects for the business."
13 August 2010
For further information, please contact:
| ILX Group plc | 020 7751 7100 |
| Ken Scott, Chief Executive |
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| FinnCap | 020 7600 1658 |
| Marc Young - Corporate Finance Tom Jenkins - Corporate Broking
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| Lothbury Financial Services Limited | 020 7868 2010 |
| Michael Padley / Libby Moss |
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Editors' Note
ILX Group plc (www.ilxgroup.com) is a leading provider of vocational training to the private and public sectors, delivered through e-learning, and instructor-led courses/workshops, and trades through three divisions:
1. UK Best Practice division delivers e-learning software, instructor-led training and implementation consultancy principally to the programme and project management, IT service management and business finance markets.
2. International division mirrors the UK Best Practice activities with a stronger emphasis on e-learning software delivery.
3. Banking & Finance division provides instructor-led training, workshops and related services, principally to the investment banking community.
ENDS