UK Oil & Gas Regulatory News (UKOG)

10 Jul 2008 07:00



10 July 2008

Sarantel Group PLC

 ("Sarantel" or the "Company")

Sale and Leaseback Agreement

Sarantel Group PLC (AIM: SLG), the leading manufacturer of revolutionary filtering antennas for mobile and wireless devices, has completed the sale and leaseback of its fixed assets comprising all plant and machinery, test and computer equipment to Close Leasing Limited ("Close Leasing"), a subsidiary of Close Brothers Group plc for £500,000. The proceeds will be used to provide additional working capital for the Company.

The principal terms of the finance lease are a 24 month term at a monthly rental of approximately £24,000. 

At the end of June 2008 and excluding the proceeds of this transaction, Sarantel had cash balances of £3.3 million equivalent to 1.7 pence per share. This cash balance includes £3.1 million net of costs received from the placings announced on 31 March and 7 April 2008.

Sitkow Yeung, Finance Director, Sarantel Group PLC said:

"This agreement with Close Leasing strengthens our balance sheet and provides increased financial flexibility. The proceeds from this transaction, together with sound financial management and a significantly reduced cost base, will assist the Company in achieving one of its primary business objectives which is to attain a cash neutral monthly trading position."

Notes to Editors:

About Sarantel (www.sarantel.com)

Sarantel is a leader in the design of high-performance miniature antennas for portable wireless applications including hand-held navigation, satellite radio and laptop computers.

Sarantel's revolutionary ceramic filtering antennas offer dramatically improved performance over existing antenna designs, resulting in a clearer signal, better range and a 90 per cent reduction in the amount of signal radiation absorbed by the body. Because of their smaller size and higher capabilities, Sarantel's antennas enable manufacturers to create innovative high-volume consumer products incorporating technologies such as GPS, Wi-Fi, WiMax, 3G, GPRS, Satellite Radio and Bluetooth. 

About Close Leasing

(www.close-leasing.co.uk)

Close Leasing Limited is based in Manchester and Surbiton and specialises in equipment leasing transactions typically between £500,000 and £5 Million in value. They cover a broad range of market sectors including, construction, engineering, telecoms, waste management and renewable energy and source business through a range of intermediaries such a specialist lease brokers, equipment vendors, corporate finance advisors as well as other lessors. Close Leasing Limited complements the Close Asset Finance Limited activities in the small - mid market sector.

Close Brothers Group plc is the largest independent merchant banking group in the UK and is amongst the 150 largest companies (measured by market capitalization) listed on the London Stock Exchange. Its total assets exceed £4.8 billion. Founded in 1878, Close Brothers Group plc employs over 2,500 people in its offices in the Cayman Islands, Guernsey, the Isle of Man, Jersey, South Africa, Continental Europe and the UK.

Close provides a comprehensive range of financial services including fund administration, fiduciary services, voluntary liquidations, trust and company administration services and asset management. While its client base is principally institutional, it also provides financial services to high net worth individuals around the world. Its banking affiliate, Close Bank provides deposit taking services to exempt companies, ordinary non-resident companies and non-resident individuals.