For immediate release: 15 December 2005
Buckland Group Plc
('Buckland' or the 'Company')
Placing and Additional Listing
Buckland Group Plc, a leading manufacturer of spark ignition equipment for the
gas appliances industry worldwide, is pleased to announce a placing of
200,000,000 Ordinary Shares of 0.001p each at a price of 0.1p ('Placing
Shares'), raising £200,000.
The funds raised will be used to provide additional working capital for the
group.
In addition, the Company has today issued 187,399,220 new Ordinary Shares of
0.001p in payment for services rendered to the Company and in conversion of
short term debt. Application has been made for the new Ordinary Shares,
together with the Placing Shares, totalling 387,399,220 to be admitted to
trading on AIM and dealings will commence on 16 December 2005.
The Company is in the process of transferring all its remaining UK
manufacturing operations to its Bangkok facility, with completion of the final
phase scheduled by the end of Q2 2006. Significant cost savings have already
been achieved from the initial phases of this transfer and more substantial
cost benefits are expected to be realised on completion of the transfer.
Patrick Rogers, Chairman, commented,
'Today's funding marks an important turning point in the Group's progress,
providing us with additional working capital to complete the transfer of all
manufacturing operations to Bangkok. Once this integration has been achieved,
the Group will benefit from greatly reduced labour costs and overheads, which
in turn are expected to deliver significant enhancements in profitability and
hence value to our shareholders.'
For further information please contact
Patrick Rogers, Chairman
Buckland Group Plc
Tel. 07711 420 702
Ben Simons
Hansard Communications
Tel. 020 7245 1100