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10 Jul 2008 07:00
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10Β JulyΒ 2008
Sarantel GroupΒ PLC
Β ("Sarantel" orΒ the "Company")
Sale and Leaseback Agreement
Sarantel GroupΒ PLCΒ (AIM:Β SLG), the leading manufacturer of revolutionary filtering antennas for mobile and wireless devices, has completed the saleΒ and leasebackΒ of its fixed assets comprising all plant and machinery, testΒ and computerΒ equipment to Close Leasing LimitedΒ ("Close Leasing"), a subsidiary of Close BrothersΒ Group plcΒ for Β£500,000. The proceeds will be used toΒ provide additional working capital for the Company.
The principal terms of theΒ financeΒ lease are a 24 month term at a monthly rental ofΒ approximatelyΒ Β£24,000.Β
At the end ofΒ JuneΒ 2008 andΒ excluding the proceeds ofΒ this transaction, Sarantel had cash balances of Β£3.3Β millionΒ equivalent toΒ 1.7Β pence per share. This cash balanceΒ includesΒ Β£3.1 millionΒ net of costsΒ received fromΒ the placings announced on 31 March and 7 April 2008.
Sitkow Yeung,Β Finance Director, Sarantel GroupΒ PLCΒ said:
"This agreement with Close Leasing strengthens our balance sheet and provides increased financial flexibility. The proceedsΒ from thisΒ transaction, together with sound financial management and aΒ significantlyΒ reduced cost base,Β will assist the Company in achievingΒ one ofΒ itsΒ primary business objectivesΒ which isΒ to attain a cash neutralΒ monthly tradingΒ position."
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SarantelΒ |
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David Wither, Chief Executive Officer |
01933 670 560 |
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Sitkow Yeung, Finance Director |
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John East & Partners Limited |
020 7628 2200 |
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John East/Simon Clements |
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College Hill |
020 7457 2020 |
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Adrian Duffield/Β Kate Norton |
Notes to Editors:
About SarantelΒ (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 asΒ GPS, Wi-Fi, WiMax, 3G, GPRS, Satellite Radio and Bluetooth.Β
About CloseΒ Leasing
(www.close-leasing.co.uk)
Close Leasing Limited is based inΒ ManchesterΒ and Surbiton and specialises in equipment leasing transactions typically between Β£500,000 and Β£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 theΒ UKΒ and is amongst the 150 largest companies (measured by market capitalization) listed on the London Stock Exchange. Its total assets exceed Β£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,Β Jersey,Β South Africa, Continental Europe and theΒ UK.
Close provides a comprehensive range of financial services including fund administration,Β 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.
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