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- Release Date: 21/06/13 11:35
- Summary: FORECAST: MGL: Mercer Group Ltd News Release - Market Update
- Price Sensitive: No
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MGL
21/06/2013 09:35
FORECAST
REL: 0935 HRS Mercer Group Limited
FORECAST: MGL: Mercer Group Ltd News Release - Market Update
NEWS RELEASE dated 21/6/13
MERCER GROUP LIMITED
MARKET UPDATE
Mercer Group is providing a market update on some recent developments and
providing further guidance for the year's trading, as follows:
1. S-Clave License
Mercer is pleased to advise that it has signed a Heads of Agreement to
license its S-Clave technology with a large multinational company. The Heads
of Agreement is subject to 30 days further due diligence and is therefore
conditional at this stage. However, the Company believes that if this deal
is consummated as expected, it would have a positive impact on the business.
We will make further announcements as this process progresses.
2. Year - End Forecast
As we come towards the end of the financial year, the Company is better able
to forecast its year-end position. Two large sales of Titan equipment have
missed this financial year, and with the S-Clave license deal unlikely to be
consummated until next financial year, we expect the EBITDA for the year to
June 2013 to be lower than forecast, at between $2.2-$2.5m.
3. Forward Order Book
The Company has a solid forward order book, particularly in the Stainless
business, and therefore expects a strong first half to the 2014 financial
year. The Interiors business continues to improve and the Company believes
it is well positioned to capitalise on the forecast growth in the
construction sector. More detail around this will be provided at the
Year-End announcement.
4. Funding
The Company is pleased to have expanded its banking facility with BNZ that
provides further debt financing facilities (a total of $8.8m facility is now
in place) that can be drawn against when opportunities present themselves.
In addition, there are $1.7m of warrants that expire on 16 December 2013
which, if exercised, would provide further capital to the Company for growth
initiatives.
For further information, please contact Rodger Shepherd, Group CEO on +649
837 7540
End CA:00237668 For:MGL Type:FORECAST Time:2013-06-21 09:35:19
