city news CITYNEWS St Helen’s Finance to leave PLUS


Following a strategic review of its operations, St Helen’s Finance, the PLUS-market quoted security, has made a number of important announcements, including stating its intention to withdraw from the PLUS securities market, and the resignations from its board of Chris Boobyer, Michael Hughes, and James Frost. The announcements, made on February 18th, were as follows:


“The Board of SHF announces the Company’s intention to withdraw its securities from the PLUS Market in accordance with Rule 81 of the PLUS Rules for Issuers (“Rules”). Reasons for the withdrawal: SHF has undertaken a strategic review of its business and wishes to reduce costs where possible. The Board are of the view that the level of liquidity and trading in its shares is so sporadic that the costs of being listed out way [outweigh? Ed] any perceived benefit to shareholders.


Also SHF's activities currently are focused on the runoff of the existing book with no further business prospect currently existing. As a result, the Company does not wish to attract new investors, for the time being.


The Directors strongly believe that for the reasons referred to above, withdrawing from trading on PLUS is in the best interests of the Company and its shareholders. Alternative arrangements for dealing in SHF's securities: The Company will use its best endeavours to match any buyers and sellers of shares post delisting. Under the PLUS Rules, St Helen’s Finance is required to give shareholders a period of 10 business days to object to the intended withdrawal of its securities from the PLUS Stock Exchange. Any shareholder wishing to raise an objection should contact PLUS in confidence by 7 March 2011. Accordingly, the Company's securities will be withdrawn from PLUS with effect from 16:30 on 7 March.” In a separate announcement, the company said, “SHF Legal Funding Limited is to be taken over by the company's joint venture partners City of London Group Plc, (“CoLG”), through the capitalisation of a loan note owed to CoLG. CoLG’s plans for growing this business will require no further financial support or operating involvement from the Company after the end of February.


In addition and as part of this strategic repositioning of the


Company, SHF announces the resignations of Christopher Boobyer, Michael Hughes and James Frost as Directors of the Company. The Company would like to thank them for their contribution to this review and wishes them well for the future.”


March 2011 ■ www.leasingworld.co.uk AssetCo seeks equity


AssetCo, the company bought out from Pelham Olive’s group in 2005 and run at the time by Paul Reilly, is best known as the company that owns and runs all the fire engines within the M25 (under a 20-year PFI contract). Bought out by John Shannon, chief executive, the company became AIM-listed in 2007, and was recently in talks with an unnamed bidder for the company. Unfortunately, the bid has been shelved, as efforts failed to refinance short term funding lines of £4 million to settle debts mounting up while its long term lines were being negotiated. AssetCo had hoped to raise cash to meet its short-term debt requirements by refinancing a £51 million facility, secured against £62 million of assets, but progress with its bankers has been slow and drawn out. At the time of the buyout, it seemed that AssetCo had stumbled on a rich seam of new business, based on acting as outsourcer for heavily equipment-based services, at a time when people were thinking that outsourcing was the way everything was going.


> RAISE UP TO £8 MILLION AS SOON AS POSSIBLE


Although AssetCo won a three-year contract in 2009 from the UAE military to provide a fully outsourced firefighting service, in the UK fire departments did not follow London’s outsourcing example. Nevertheless, the company is upbeat, and in a statement issued 21st February, addressed the funding issues by going for loan, and equity, finance, and hinted of management changes in the future. The statement says, in part, “The Directors have also received advice from Arden Partners, the Company's NOMAD and Stock broker concerning the feasibility of an equity fundraising and in the light of this advice, the Company has decided to approach investors and shareholders in order to raise up to £8 million, as soon as possible.


As previously announced, the Company will still proceed with the Refinancing to strengthen further the working capital available to the business. It is planned that the Refinancing will release an additional sum of approximately £8.5 million of capital (net of fees and the cost of interest rate hedges),” and, “Following the completion of the equity fundraising mentioned above, the Board will review the structure and managerial resources, and will make appropriate changes, to accommodate the future requirements of the business and ensure future value for shareholders.”


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