Artisan may need to raise cash

12th Oct 2010 15:50

Residential and commercial property developer Artisan warns that it may have to raise cash from a share issue in order to negotiate new facilities.Net debt is £18.5m, with all the debt lasting until 1 July 2011 - just over one year from balance sheet date. The company's NAV is £13.5m.Alternatively, Artisan could raise cash from selling part of the business. Artisan reported a sharply lower loss on reduced turnover in the year to June 2010. Even if exceptional write-downs are excluded, the loss still more than halved from £3.77m to £1.78m. The investment property portfolio made a positive contribution. Revenues fell from £10.9m to £9.4m, which was due to lower commercial property sales. Trading was tough during the summer months. Improved consumer confidence and mortgage funding is required for further recovery in the property market.