Contract Awarded and Working Capital Raised
15 September 2009 - 4:30PM
UK Regulatory
TIDMSTBR TIDMEAGA
RNS Number : 0376Z
Southern Bear PLC
15 September 2009
15 September 2009
Southern Bear Plc
("Southern Bear" or the "Company")
Significant 'eaga plc' Contract Award
Further GBP250,000 working capital raised
* BGC awarded eaga plc contract for the Warm Front 2 scheme
* Contract increases the Company's services to eaga from four to 13 regional areas
* Significant increase in BGC's sales revenue and profitability expected
* Further approximately GBP250,000 working capital raised to finance the expansion
of Southern Bear & BGC
Southern Bear plc, a holding Group focusing on investments in the support
services, industrial and engineering sectors of the UK and Europe is delighted
to announce that its wholly owned subsidiary, BGC Limited ("BGC"), has been
successful in the eaga plc ("eaga") Invitation to Tender ("ITT") to provide
contracting services for the Warm Front 2 scheme.
BGC has provided its services to eaga since 2005, having been initially
appointed to operate within four regional areas. Significantly, BGC has now been
appointed to operate across 13 regional areas of the Midlands and North West and
will be undertaking the following specialist works: 'Gas, Electrical, Oil &
Solid Fuel Central Heating' and 'Hot Water Installations & Repairs'.
Since 2005, the value of Warm Front works completed by BGC on behalf of eaga is
in the region of GBP14.0 million. BGC's new contract award further increases the
Company's services to eaga from four to 13 regional areas - which is expected to
significantly increase the levels of sales revenue, along with the underlying
profitability of the business. BGC's appointment is initially for one year with
options to extend year-on-year, for a total contract period of four years.
eaga holds the contract to deliver the GBP1.5 billion Warm Front programme in
England, the cornerstone of Government's target to eliminate fuel poverty. The
Government remains committed to tackling fuel poverty and has recently announced
a further GBP800 million of investment providing finance to extend the Warm
Front programme until 31st March 2011 with a provision of a further extension
for 2 years beyond that point.
Southern Bear also announces today it has raised an additional GBP249,984
working capital through the issue of 13,888,000 shares at 1.8p per share in
order to finance the expansion of various businesses of Southern Bear.
Application is being made for the new ordinary shares to be admitted to trading
on AIM with admission expected on 21 September 2009.
The total number of shares now in issue is 734,589,625.
Speaking today, Southern Bear's Chairman Jon Pither stated:
"We are delighted that this new contract has been secured as it confirms BGC's
continuing strong relationship with eaga. Since becoming a contractor for eaga
in 2005, BGC has enjoyed an increasing level of business. Fuel poverty remains
a critical issue with energy prices increasing, which creates strong, long term
growth dynamics for the type of services that BGC provides.
"BGC's contract award is the culmination of many months of intensive, thorough
and detailed preparation by Group Executive Directors Steven Hancock and Mark
Sims. My particular thanks must go to Steven and Mark, as the award of this
prestigious contract is a true testament to their ongoing commitment and
dedication to the growth of Southern Bear plc.
"The additional working capital will help us finance and progress our expansion
plans for Southern Bear and BGC."
=-END--
For further information please contact:
Southern Bear plc
David Parsons
Tel: +44 (0) 1926 888302
Nominated Adviser:
Grant Thornton UK LLP
Gerry Beaney
Tel: +44 (0) 20 7383 5100
Broker:
SVS Securities plc
Ian Callaway
Tel: +44 (0) 20 7638 5600
Financial PR:
Bishopsgate Communications
Robyn Samuelson/Siobhra Murphy
Tel: +44 (0) 20 7562 3350
This information is provided by RNS
The company news service from the London Stock Exchange
END
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