Share placing gives retailer £1.3m

Jan 31 2008 by Peter McCusker, The Journal

RETAILER Premier Direct announced that it has successfully raised around £1.3m from the market through a share placing.

The group specialises in selling toys, gifts and books to office workers through a network of dedicated distributors.

Premier Direct placed six and a half million ordinary shares with institutional and private investors, including the senior management of the company.

The funds will be used to repay short-term banking facilities and provide additional working capital for the business.

Over the Christmas trading period, sales were slower than expected and the introduction of a new IT system resulted in an over-purchase of stock.

Despite these problems, Premier Direct confirmed that margins are improving and costs are being reduced. The board is confident that trading will be in line with expectations for the six months to today.

Premier Direct’s share price was marked lower over the course of the trading day by 2.5p to close at 25.5p.

One of the best performances in the regional portfolio was recorded by green support services company, eaga.

The group, where we act as broker, announced an upbeat set of figures to the market on Tuesday and management highlighted a number of exciting opportunities and developments.

Eaga’s share price moved strongly higher over the day by some 5.96% or 9p to close at 160p.

Elsewhere in the market, it was also a good day for Hargreaves Services, where we also act as broker. The transport and support services group is scheduled to announce its interim numbers to the market on February 14.

Hargreaves confirmed in December that trading was in line with expectations and good progress had been made integrating its recent acquisitions. Hargreaves’ share price motored higher by 4.47% to finish the trading session at 502.5p.

Anthony Peart Brewin Dolphin Anthony.Peart@Wise-Speke.co.uk