OneView Group PLC Trading Update, fundraise and debt restructuring (7701X)
February 24 2017 - 2:01AM
UK Regulatory
TIDMONEV
RNS Number : 7701X
OneView Group PLC
24 February 2017
24 February 2017
OneView Group plc
("OneView" or the "Company")
Trading Update, potential fundraise and proposed debt
restructuring
OneView (AIM: ONEV), one of the retail industry's leading
digital transformation software providers for in store customer
service, provides a trading update ahead of the year ending 31
March 2017.
OneView has made positive progress with a number of pipeline
opportunities since the start of calendar year 2017 and has
experienced considerable interest in its hosted solution,
increasing both total deal size and recurring revenues. This
includes, as recently announced , the Company's largest ever
multi-year contract to host their solutions for existing customer
Discount Tire.
Revenues for the second half of the 2017 financial year are now
therefore expected to be considerably higher than in the first half
and not less than $2m (H1 2017: $1m actual). Accordingly full year
2017 revenues are expected to be not less than $3m (2016:$8.1m)
which includes the up front element of the Discount Tire
contract.
As noted in the Interim Statement released in December 2016, the
Company's principal focus during the financial year has been on
product development, getting solutions production ready to enable
OneView to take customers live in their store estates. The Company
has made strong progress in this regard and its project plans
anticipate four customers going live in the current calendar
year.
Despite the progress, the Board of OneView recognises the need
to strengthen its balance sheet to enable the Company to take full
advantage of its growth opportunities. This will require external
funding to scale up sales and marketing, provide working capital to
deliver new projects and to maintain, develop and upgrade the suite
of products and solutions. Two additional loans have been taken out
in the last three months to meet working capital requirements and
the Board is now considering an equity fund raising which, combined
with a restructuring of the debt, (as detailed below) will enable
the Company to focus on delivering its pipeline.
The Company has now reached agreement with its debt providers to
allow, contingent on the success of the fundraise and repayment of
its short term debt maturing in the next four months ($1.3m), the
outstanding debt to be restructured as follows:
-- $2million of the remaining fully drawn $3m debt facility that
matures in July 2018 will be converted into ordinary shares at the
same share price as the equity fund raise.
-- The maturity of the remaining $1m of debt will be extended to
July 2020 and the coupon reduced to 8%. This debt will also be
convertible at the price at which the equity is raised, subject to
the Company's right to elect to repay it at any time.
The current debt providers are Lane Capital Group ("LCG") (a
significant shareholder in the Company and ultimately controlled by
interests associated with Gary Lane, a Non-Executive director) and
Hawk Investment Holdings Limited ("Hawk"). Hawk is controlled by
the Morton Private Trust Company. Given the significant
shareholdings of LCG and Hawk and the board position held by Gary
Lane, the proposed debt restructuring is deemed a related party
transaction under the AIM Rules for Companies. The independent
Directors (being all those other than Gary Lane), having consulted
with finnCap, consider that the terms of the proposed debt
restructuring are fair and reasonable insofar as the Company's
shareholders are concerned.
Stuart Mitchell, CEO of OneView commented: "We have built a good
pipeline of potential business at OneView and it is very pleasing
that this has translated into new business and increased revenue in
the closing months of our financial year. A strengthened balance
sheet will allow us to deliver on our pipeline and we expect
further growth helped by a number of our existing customers going
live in the coming months."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Further Details:
OneView Group Tel: 01634
plc 673172
Stuart Mitchell,
CEO
Linda Palanza,
COO
Mark Wilson, Finance
Director
finnCap Limited Tel: 0207
220 0500
Geoff Nash
Hybridan
Claire Noyce Tel: 0203764
2341
Newgate Communications Tel: 020 7653
9848
Bob Huxford
Lydia Thompson
About OneView Commerce
OneView Commerce is a pioneer in digital store transformation,
helping global retailers implement successful unified commerce
strategies that centre on the critical engagement in store. The
company's cloud-based Digital Store Platform combines digital-ready
point of sale, line busting, and end-to-end unified commerce
capabilities, with the ability to capture and deliver the rich
content from these store interactions across the retail enterprise.
OneView enables the exchange of this powerful store information to
immediately impact sales, business operations and the customer
experience. Travis Perkins plc, Wickes, and Discount Tire
Corporation are among the global retailers revolutionizing their
stores with OneView Commerce. For more information, visit
www.oneviewcommerce.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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