TIALIS ESSENTIAL IT PLC — Capital/Financing Update 2018

May 23, 2018

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RNS Number : 9465O

IDE Group Holdings PLC

23 May 2018

THE ANNOUNCMENT CONTAINS INFOMRATION WHICH, PRIOR TO ITS DISCLOSURE, WAS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION.

IDE Group Holdings Plc.

Proposed Issue of Unsecured Loan Notes

IDE Group Holdings plc ("IDE Group", or the "Company"), the mid-market network, cloud and IT Managed Services provider, announces that the Company is in advanced discussions with its existing shareholders to provide funding of approximately £2.0 million, subject to bank approval, through the issue of unsecured loan notes (the "Unsecured Loan Notes").

This follows previous statements by the Company, most recently in an announcement on 8 May 2018, that anticipated profitability in 2018 is expected to be significantly lower than 2017, but is expected to improve steadily throughout 2018 and beyond following implementation of the operational review. These financing arrangements will support the Company's foreseeable working capital needs during the ongoing strategic and operational review. 

The Unsecured Loan Notes are expected to have an annual coupon of 10% rolled up and paid annually alongside an arrangement fee of 1.5% payable on the first anniversary and will mature in 2021.

The Company plans to provide a trading update on its progress in early July along with the conclusion of its strategic and operational review.

The Board considers that a fundraising by way of the Unsecured Loan Notes is the most appropriate route for the Company to raise the capital it needs to address its current working capital constraints in the timescale available.

The Company expects to release a further announcement once formal terms have been agreed which is expected by the end of next week.

IDE Group Holdings Plc Bill Dobbie, Chairman Julian Phipps, COO & CFO	Tel: +44 (0)344 874 1000
N+1 Singer Nominated Adviser and Broker Richard Kauffer Jen Boorer	Tel: +44 (0)20 7496 3000
Alma PR Limited Rebecca Sanders-Hewett Robyn Fisher	Tel: +44 (0)20 8004 4218

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").  Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

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