24 September 2010
At its Annual General Meeting later this morning, Paul Lever, the Chairman of ILX Group plc, the AIM quoted provider of e-learning software and business training, will make the following comments:
Firstly, I would like to apologise for announcing and then cancelling the dividend. As we stated at the time, we were in the process of refinancing our banking facilities and it was decided by the Board, in conjunction with our advisers, that the monies would be better applied to fund the expansion of the business overseas and to strengthen our balance sheet while the global economies continue to be beset by uncertainty.
"Since that announcement, our revised banking facilities have been approved and trading has remained buoyant overseas where the business in Australasia continues to expand. In addition we have announced a large significant contract win in the Middle East and the opening of our first Nordic office in Copenhagen – which is already bearing fruit. In the UK we have noticed some slowing but no sharp downturn, although the performance of CTG in the finance division remains weak and is a cause for concern.
"The new banking facilities we have negotiated comprise a £2.4 million 3-year term loan, a £0.8 million 3-year bullet loan, and a £0.95 million annual revolving credit facility. These will provide the Group with the additional working capital, and a more appropriate structure, that will allow us to take advantage of the increasing opportunities within the Group for growth, particularly internationally.
"The Group’s unique strength lies in its proprietary software products, which accounted for 44% of revenue but 62% of gross profit in the last financial year. This, allied to our overseas expansion will provide the principal focus for future growth.
"We remain confident regarding the outcome for the year."
For further information, please contact:
|ILX Group plc||FinnCap||Lothbury Financial Services Limited|
|Ken Scott, Chief Executive
Tel: 020 7751 7100
Tel: 020 7600 1658
|Michael Padley / Chris Roberts
Tel: 020 7868 2010