Electric Word raises £1.3m via share offer

20th Aug 2012 07:35

Electric Word, which provides training services for the education, healthcare and sport sectors, reported a decline in half year adjusted pre-tax profit as it announced plans to raise £1.3m through a share placing.It announced a placing of 88.3m ordinary shares at 1.5p per share to raise gross proceeds of £1.3m and an open offer to raise up to £0.5m.The group, which provides specialist information and professional development using websites, magazine, books, training, conferences and consultancy services, said adjusted pre-tax profit fell 18 per cent to £0.4m for the six months ended 31 May 2012 compared to the same period a year ago.Revenue remained at £7.7m, little changed from the previous year after restructuring reduced activity in the education division. Its education division returned to profit from continuing activities with £0.1m profit compared to a £0.1m loss after restructuring and improved event bookings. Its Health and Sport & Gaming sectors saw growth. Chief executive Julian Turner commented: "We are engaged in a programme of investment to create businesses of lasting value in each of our markets. We have continued this programme despite the difficult trading conditions that we have faced in public sector markets because we see new opportunity in the structural changes that are taking place." He added, "While the turbulence is likely to continue for some time, particularly in the health sector, we are taking the opportunity to build products and market positions to deliver future growth."Electric Word said the additional funds raised will allow the group to accelerate that process as it grows its three divisions in the coming years.Current trading is in line with company expectations but will be impacted by its plans to accelerate its programme of investment through the rest of the year."The equity fundraising announced with these results will allow the business the scope and capital to speed up these investments to take full advantage of the group's opportunities over the next three years. This will have a short term adverse impact on profitability but is expected to leave the businesses in a much stronger position in the medium term," it said in a company statement.Net debt remains at £1.7m.CJ