SMC nets £6m for expansion
00:00 18 Oct 2006
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SMC, the architect and design group, has raised £6m as a result of issuing almost four million new shares. As a result, the rapidly expanding group is able to look for further acquisitions.
Stewart McColl, SMC chief executive, said: “We’ve raised some new money because our debts added up to 84% of our [shareholder] funds. This move takes that figure down to 50%.
“We’ve done all our recent deals with debt as it was cheaper than going to the market. That strategy has proved to be right. SMC’s share price was 143p before we made the five acquisitions announced on 25 September. The price has subsequently climbed to 170p, allowing us to issue these new shares at 160p.”
Of the latest five deals, four of the architect groups were based in Scotland and one in England.
Analysts anticipate SMC’s turnover will climb to £35m this year and to more than £55m in 2007.
[Contract Journal, 18 October 2006, p 2]