MJ Gleeson's stake in company to rise to 92%
MJ Gleeson has increased its stake in GB 黑洞社区 Solutions from 73% to 92% after a debt-for-equity swap.
Martin Smout (pictured), the chief executive of GB 黑洞社区, led a management buyout from Gleeson in July 2005. Gleeson agreed to loan GB 黑洞社区 拢3.8m to fund that deal; this will now be converted into shares.
Smout said: 鈥淚t's a good deal for us because, despite a
one-off redemption charge of 拢711,000, it will save us 拢923,000 every year in interest payments.鈥�
He added: 鈥淚n the current market, balance sheets get a bit thin, so it also helps us in that respect. It is also an endorsement of the business from MJ Gleeson; it shows they have faith in what we're doing.鈥�
In the year to 30 June 2008, pre-tax profit at GB 黑洞社区
fell 21% from 拢909,000 to 拢718,000. This was the
result of the one-off charge on the swap.
But turnover was up by 17% from 拢177.5m to 拢207.2m, which the company attributed to a solid supply of repeat business. Previous clients accounted for 60% of all its wins in the year.
Smout said: 鈥淲e have always taken the approach that it is best to have steady and sustained growth based on a policy of working in areas in
which we have proven expertise. This has paid off over the past year, although the economic conditions have become more difficult.鈥�
GB 黑洞社区 ended the year with cash reserves of 拢20.5m, but the company said opportunities for growth were limited by the liquidity problems in the banking sector. 鈥淭he current economic turmoil will make growth unlikely,鈥� the company said.
It has a secured order book that will generate 拢202m in turnover and expects the public sector to provide some protection against the slowdown. The firm has already curtailed its residential work.
The company is based in Surrey with offices in the east Midlands and northern England.
