12 November 2015 – final results/share placing
The group has announced its results for the year to 31 July although the financials are not that important given the early stage of development at the group. Revenues for the year were just £480k and the loss before tax increased to £10.7m. The group states that it has made significant progress in commercial laundry with seven of the largest ten hotel chains now being customers and there is clearly scope to roll out the commercial laundry business in North America and Europe. The group believes that the domestic laundry market has significantly greater potential than the commercial market and significant activities are planned to develop this opportunity. To help fund these activities, the group is planning to raise £40m through a placing of shares at 225p with both new and existing institutional investors. This should be sufficient to fund the group’s development over the next two and a half years and although it is still a long way off profitability the group clearly has exciting prospects going forward. We believe that the shares are a LONG TERM BUY.