Business
Posting of Annual Report & Share Consolidation
Posting of Annual Report & Share Consolidation.
About this update from Parkmead Group Plc
[{"type":"text","content":"\n \nRNS Number : 7751T Parkmead Group (The) PLC 22 November 2013 \n\n22 November 2013\n \nThe Parkmead Group plc \n(\"Parkmead\", \"the Company\" or \"the Group\")\n \nPosting of Annual Report & Share Consolidation \n \nParkmead announces that it is today posting its Annual Report and Accounts for the year ended 30 June 2013 to the Company's shareholders. The Annual Report and Accounts is also being made available on the Company's website.\n \nAccompanying the Annual Report, the Company has also posted to shareholders the Notice of AGM which contains details of a share consolidation (the \"Share Consolidation\") which the Company is proposing to undertake, and which shareholders are being asked to vote on at the AGM. A summary of the background to and reasons for the Share Consolidation is set out below.\n \nShare Consolidation\n \nThe Company has made considerable progress over the past twelve to eighteen months. Net oil and gas production has grown by approximately 400 per cent and revenues have increased significantly to £4.1m (2012: £2.9m). To reinforce the trading and financial progress made by the Company during this period, the Directors believe that it would be appropriate and beneficial to both the Company and its shareholders to undertake a Share Consolidation.\n \nThe Board has therefore decided to seek Shareholder approval at the Annual General Meeting for the Share Consolidation based on every 15 Existing Ordinary Shares being consolidated into 1 New Ordinary Share. \n \nThe Board believes that the consolidation of share capital will result in a more appropriate number of shares in issue for a company of Parkmead's size and may also help to make the New Ordinary Shares more attractive to investors going forward. \n \nAs at 14 November 2013, the Company had 1,036,202,278 Existing Ordinary Shares in issue. With shares of low denominations, small absolute movements in the share price can represent large percentage movements resulting in high volatility. The Share Consolidation is expected to assist in reducing the volatility in the Company's share price and enable a more consistent valuation of the Company. The Board also believes that the bid/offer spread on shares priced at low absolute levels can be disproportionate to the share price and therefore ...