ML Holdings warns of 'a lost cause' and announces cash call
Wednesday 27 January 1993
The company also announced a two-for-one rights issue to raise pounds 14.3m and appointed two new non-executive directors.
Howard Grant, the recently appointed chief executive, warned that the current financial year, ending in March, was 'a lost cause at ML'.
The company lost pounds 1.5m in the first six months of the year and after a difficult second half the full- year result will be 'unsatisfactory'. Write-offs of up to pounds 6.5m will mean a pre-tax loss for the second year running. ML lost pounds 2.24m last year.
ML, which recently won a contract to supply 113 training aircraft to the US Air Force, has made 260 staff - 18 per cent of the workforce - redundant so far this year. Mr Grant said that would mean savings of up to pounds 2m a year but did not expect any benefit from the cuts until next year.
The rights issue, which is pitched at 15p a share compared with an unchanged share price of 18p, will reduce gearing to 50 per cent. The directors are taking up their entitlements in full.
ML had said it was planning to reduce its borrowings via a programme of disposals but it had become clear that in current market conditions any proceeds would be unacceptable.
Shareholders were warned that failing to approve the rights issue at an extraordinary meeting next month would result in the company breaching its financial covenants.
They were also told that, after a passed interim dividend, there would be no final payout.
And why are 'southern' ways of speaking spreading north?
life + styleClarissa Baldwin is the brains behind the slogan 'A Dog is for Life not just for Christmas'
Autumn Statement 2013: Work until you’re 70 - George Osborne accused of ‘living in fantasy land’ over pension reforms
Nigella Lawson arrives for second day in court after accusing Charles Saatchi of threatening to 'destroy' her with drug claims
Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
Scientists sequence oldest human DNA from fossilised leg bone found in Spain
‘Put it in my mouth’: Viewers outraged by apparent reference to oral sex in VIP e-cig advert
- 1 Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
- 2 How black gold was hijacked: North sea oil and the betrayal of Scotland
- 3 A forgotten episode in Russian history leaves links with the Philippines
- 4 Scientists sequence oldest human DNA from fossilised leg bone found in Spain
- 5 ‘Put it in my mouth’: Viewers outraged by apparent reference to oral sex in VIP e-cig advert
iJobs Money & Business
£90000 - £120000 per annum: Harrington Starr: Global Director of Infrastructur...
£50000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Associate Dire...
£Negotiable: Citifocus: High calibre individual with a strong understanding o...
£50000 per annum: Morgan Hunt: Whilst the Real Estate sector was suffering thi...