Construction group reveals details of refinancing deal to reduce its debt mountain
Miller Group reduced its pre-tax loss to 拢92.8m in the financial year ended 31 December 2011, as the firm revealed more detail on a major refinancing deal this month to reduce its debt mountain.
The Scotland-based construction group lost 拢159.8m in 2010. The group鈥檚 turnover fell 11% to 拢587.6m in 2011 from 拢662.9m in 2010/.
A large part of Miller鈥檚 拢93m loss was down to interest payments of 拢51m on the firm鈥檚 debt mountain and an exceptional write-down of 拢53.6m.
But the firm pointed out in its results that operating profit before interest increased nine-fold to 拢20.8m from 拢2.4m in 2010.
The firm said the increase in operating profit was achieved through margin recovery in the company鈥檚 housing and mining businesses.
It also revealed that its major deft-for-equity deal with investors on 1 March had reduced its debts by 拢500m.
The firm converted 拢264.5m of its debt to ordinary shares and received a further cash injection of 拢160m in exchange for equity.
The deal helped reduce the amount the group owed to creditors within a year from 拢823.8m on December 31 2011 to 拢192.9m after the refinancing was completed.
Chief executive Keith Miller said: 鈥淭he significant capital investment and support from our new shareholders provides us with a solid platform for future growth.
鈥淥ur chosen markets are showing encouraging signs of recovery and, with a robust balance sheet, together with the steps we have taken to position each of our businesses, we can look to the future with some confidence.鈥�
No comments yet