Avesco to increase capital expenditure programme

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Avesco, the television facilities group, is tapping shareholders for pounds 7.1m to finance its capital expenditure programme and reduce gearing which stood at 45 per cent in September. Shares in the placing and open offer are being allocated on a two-for-seven basis at 282p. The group said it had spent pounds 6.5m on capital equipment and investments in the six months to September. It now planned around pounds 5m of capital expenditure, including Sony JumboTron screens and new projection and camera equipment.

Further consideration of $1.5m (pounds 900,000) may also be due on its minority investments next year, the group said. Avesco announced that profits had more than doubled to pounds 1.76m in the six months to September and it is raising the interim dividend by a third to 2p.