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Ramesys gets an extra £9m from Lloyds and restructures balance sheet

publication date: May 1, 2008
author/source: Ed Tranham

Ramesys, the integrated ICT supplier with £80m of BSF wins, has secured an additional £9m overdraft facility from its financial backers Lloyds TSB Bank and Lloyds TSB Development Capital (LDC), £6m of which was made available in March 2008. This lifts Ramesys’ total overdraft facility to £11m, which reflects the high cost of bidding for BSF contracts and the slippage in BSF projects coming on stream. At the same time, LDC has converted £12.5m plus accrued interest of secured loan stock to preference share capital, thus restructuring Ramesys’ balance sheet.

However, within the recently filed accounts for the year ending 31 December 2006, there is a note that the new overdraft facilities will be insufficient for Ramesys to pay in full an unnamed deferred trade creditor £3.6m, which becomes due in January 2010. Additional investment will be required from current investors or third parties to pay this creditor if the business is to meet its liabilities. An interesting in-tray item for Ramesys’ newly appointed chief financial officer, Robin Birch.


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