Business
Placing, new contract wins and Broker appointment
Placing, new contract wins and Broker appointment.
About this update from Hellenic Dynamics Plc
[{"type":"text","content":"\n \nRNS Number : 4826G Mountfield Group plc 12 May 2011 \n \n\n \nMountfield Group PLC (the \"Company\" or the \"Group\")\nPlacing to raise £560,000 to provide the Group with additional working capital to fund significant contract wins in the data centre construction sector\n \nMountfield Group (LSE MOGP) , the AIM-quoted company specialising in the construction of data centres is pleased to announce that the Company has placed 37,333,334 new ordinary shares of 0.1 pence each (\"Shares\"), representing approximately 17.56% of the Company's enlarged issued share capital (the \"Placing\").\n\nThe new Shares have been placed with institutional and retail investors at a price of 1.5 pence per share, for gross proceeds of £560,000. The Placing is subject to admission of the new Shares to trading on AIM becoming effective which is expected to occur on the 17th May 2011. The proceeds of the Placing will be used to fund working capital required for the delivery of new contract wins in the rapidly growing data centre construction space.\n\nIn that context the Company is also pleased to announce that it has been awarded three contracts with an aggregate value of £5 million to fit out data centres in the UK for leading data centre operators. All three contracts are expected to be delivered during 2011, one of which may lead to further orders over the coming year as further phases of the project are built out.\n\nThe secured order book for the four months to the end of April 2011 exceeds the total revenue achieved for 2010. Management currently believe that existing sales delivered hitherto combined with clear visibility of the robust Group order book indicate that revenues for the Group in the current year are likely to be significantly ahead of the financial year 2010. \n\nAfter 2 years of limited activity the demand for data centre builds has returned during the last quarter in a very significant way and current market indications are that this activity in the sector looks set to continue for the foreseeable future, and therefore the Group looks forward to further gains for its core business activity.\n\nThe IT sector is a significant consumer of energy and the Company, along with its working partners, is dedicated to construct more energy efficient premises and these projects will incorporate designs to maximise ef...