UK software house Gresham Computing plans to raise £2.75 million in a share placing after posting falling revenue and a widening in pre-tax losses for the first half of the year.
As stated in its trading statement released earlier this month, pre-tax losses at the company widened to £1.5 milllion in the first half of the year, against pre-tax losses of £0.4 million for the first half of 2006.
Revenue for the six months ended 30 June 2007 fell by 10.6% to £6.4 million, from £7.2 million a year earlier.
Despite the first half results, Gresham chairman, Alan Howarth, says the firm has a strong pipeline and will begin to reap the rewards of its investment programme during the second half of 2007.
"As a result, we believe that trading for the full year to December 2007 will be in line with management's expectations," adds Howarth in a statement.
However the firm is now looking to raise £2.75 million - before expenses - in a placing of 2.5 million shares at a price of 110 pence each. The placing price 6.38% below the stock's closing price of 117.5 pence per share yesterday.
Gresham says the funds raised will be used to strengthen its balance sheet, fund ongoing capital requirements and fund the expansion of its business.