WTL Waterlogic

RNS Number:8212O
Waterline Group plc
13 July 2005



                              WATERLINE GROUP PLC
                          ("Waterline" or "the Group")

                    PLACING AND ADMISSION TO TRADING ON AIM

Waterline Group Plc, one of the UK's largest suppliers to the fitted kitchens
industry, today announces commencement of dealings of its Ordinary Shares on the
AIM market ("AIM") of the London Stock Exchange. Daniel Stewart is acting as
Nominated Adviser and Broker to the Company and has, on behalf of the Company
and Michael Lawrence, Chief Executive of the Group, raised approximately #2
million for the Company and #100,000 for Michael Lawrence by procuring
subscriptions for the Placing Shares from institutional and other investors. The
stock market EPIC is WTL.L.

Admission and Placing Statistics

Placing Price                                                                84p

Number of Placing Shares                                               2,500,000

Gross proceeds of the Placing receivable by the Company               #2 million

Proportion of the Enlarged Share Capital represented by the 
Placing Shares                                                   19.06 per cent.

Number of Ordinary Shares in issue immediately following Admission    13,113,752

Market Capitalisation at Admission at the Placing Price           #11.02 million

Use of Funds and Reasons for Admission

The net proceeds of the Placing received by the Company will be used to repay
debt, finance the Group's growth both organically and, potentially, by making
complementary strategic acquisitions.

The Directors believe that Admission will have a number of benefits for the
Group, including the following:

* Admission will raise the profile of the Group among both current and potential
  customers, suppliers and investors;

* Admission should reduce the cost of capital to the Company for future growth;
  and

* the provision of share based incentive schemes involving quoted shares should
  assist in the recruitment, incentivisation, reward and retention of high 
  calibre employees.

Further Information

The Group is one of the UK's largest suppliers to the fitted kitchens industry.
It offers kitchen furniture, appliances, sinks, taps and associated products to
over 8,000 retailers. The Group's comprehensive portfolio of products from a
wide range of leading brands make it a one-stop provider to specialist kitchen
retailers and, the Directors believe, an important partner to both retailers and
manufacturers. The additional services that Waterline provides to its customers
such as training, product advice, stock management and logistics differentiate
it from more conventional distributors and provide the opportunity for the Group
to achieve higher margins. The Group has also developed a range of bathroom
furniture and supplies a range of bedroom furniture.

The Group consists of three operating subsidiaries, of which Waterline is the
most significant:

   *Waterline is the principal operating subsidiary of the Company, supplying
    a comprehensive range of third party and own-brand products to the
    specialist kitchen retail industry as well as to builders merchants, house
    builders and property developers. Due to its positioning within the
    industry, it is also an integral part of the manufacturers' marketing, sales
    and distribution functions;


   *MWD is a regional supplier to the fitted kitchen industry in the south
    west of England. It was acquired by Waterline in 2002 to develop the Group's
    business in this area. In addition it provides a platform for a nationwide
    contracts division designing and supplying kitchens to house builders and
    property developers; and


   *Boston Basins is the Group's US subsidiary supplying a selection of
    kitchen and bathroom products to the north eastern United States.


ENDS

Contacts:

Waterline Group plc
Michael Lawrence, Chief Executive                       01908 219759

Daniel Stewart & Co
Ruari McGirr                                            0207 374 6789


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCGGGMNGFLGKZM

Waterlogic (LSE:WTL)
Historical Stock Chart
From Jun 2024 to Jul 2024

Waterlogic (LSE:WTL)
Historical Stock Chart
From Jul 2023 to Jul 2024