AIM-listed StatPro Group, a supplier of analytical services to the asset management community, has raised £2 million in a share placing to boost its working capital and says it will accelerate its restructuring programme in a bid to reign in costs.
In a trading update Statpro says it raised additional working capital to improve its overall financial position and to mitigate any disruption to its existing banking arrangements with Kaupthing Singer & Friedlander, which has been placed into administration.
The vendor says 4.5 million new shares have been conditionally placed with institutional investors and directors at 45 pence each, to raise approximately £2 million after expenses. The placing price represents a discount of 10% on the closing price of 50 pence yesterday.
As part of the placing StatPro directors are putting up £400,000 to buy 888,890 of the shares - 19.7% of the total.
In addition to raising new capital, StatPro says it will accelerate its product development restructuring programme, begun earlier this year, in a bid to significantly reduce its cost base and generate net savings of around £1.5 million a year.
The firm is moving development work currently based in London and Paris to its centre in Cape Town, South Africa. At the same time Stratpro is consolidating its data division's operations in Canada from two offices into one.
There will be a one-off exceptional charge related to restructuring costs and asset write downs of about £1.7 million in H2 2008.
In addition to news of the placing and the cost cuts, Stratpro says trading in the third quarter is in line with market expectations "despite the challenging and unpredictable state of the markets".
But the firm warns that "conditions are likely to lead to a slow down in new business levels".
StatPro's shares were down 2.5 pence, or five per cent, to 47.5 pence in mid-morning trading.