Plasmon’s restructure at ‘advanced stage’; flags £3.7m one-off loss, ’07 pre-tax loss of £15m ahead of share placment
Plasmon plc (PLM.L) said that sales of its UDO products have continued at reduced levels and the restructuring plans outlined in the trading update in early March to discontinue some legacy activities and simplify its operational structure are now at an advanced stage.
It also said that the prospectus for placing 40 million new shares to raise £8m was posted to shareholders yesterday.
Trading update
The Cambridge-based company said in a statement to the London Stock Exchange that since the trading update made on 9 March 2007, it has demonstrated UDO2 technology at the CeBIT trade show on 15 March as planned and also announced a new distribution agreement with Avnet Technology Solutions, a major US IT distributor.
It said the corporate restructuring is expected to result in a one-off charge of £3.7m for the year ended 31 March 2007.
The estimated outcome for the 2007 financial year is for the loss before tax to be approximately £15m, including the restructuring charge.
The loss estimate assumes that the share placing is successful. If is not, the Board said it would be obliged to immediately consider significant additional restructuring of operations, which would be likely to impact the carrying value of certain assets.
The estimate of the loss does not include any additional costs that might result from a failure to complete the share placement.
The 23-year-old company is a specialist in professional data storage, providing a line of UDO drives and media, optical libraries, and Raidtec RAID storage systems for NAS, SCSI and Fibre Channel environments.
It’s share price gained 2.5p to 47.5p, valuing the company at around £39m.
24th April, 2007
