It looks like your browser is not up to date.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Infrastrata tumbles as it announces plans to raise £9m in placing

Tue 04 May 2021 14:10 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Infrastrata shares tumbled on Tuesday after the company said it plans to raise a minimum of £9m in a placing, partly to carry out material fabrication works after securing its first major contract.

The AIM-listed company, which focuses on strategic infrastructure projects and physical asset lifecycle management, plans to place at least 30m new ordinary shares at 30p each to existing and new investors. It also announced an open offer of up to 13.6m shares to be to be issued to qualifying shareholders at 30p each, to raise an additional £4.1.m.

Infrastrata said proceeds from the fundraising will be used to carry out material fabrication works as it has now secured its first major contract through the £26m Saipem contract recently won.

They will also be used to satisfy the performance bond required for phase I of the Saipem contract; to provide capital expenditure for site improvements to ensure that the works can be carried out to the requisite standard; and for additional working capital to support enlarged business activities.

The company noted that since its acquisition of Harland & Wolff in December 2019, it has built a sizeable, weighted pipeline of opportunities across its five markets, which amounts to £800m in potential contract values over the next 18 months.

"Of this pipeline, the company has identified £72.5m in near term revenue opportunities. The group is currently in ongoing discussions with prime defence contractors regarding subcontract fabrication opportunities for a series of defence contracts, and has received several approaches from cruise operators for technical dry dockings before cruise vessels are brought back into operation," Infrastrata said.

"Between now and 2025, the Directors have estimated a weighted pipeline of potential contract opportunities for the group of £1.68 billion, which applies a probability factor to the £6.4bn of unweighted opportunities identified across the group's five key markets. As the company executes on this pipeline, the directors anticipate that the group will be cash break-even by end of 2021 on an annualised basis."

At 1500 BST, the shares were down 20% at 31.75p.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More company news from ShareCast