EFD Eatonfield

TIDMEFD

RNS Number : 2481F

Eatonfield Group plc

20 April 2011

20 April 2011

Eatonfield Group plc

("Eatonfield" or "the Group")

Working capital funding update

On 31 March 2011, the board of Eatonfield announced that the Group had sufficient working capital funding through to mid April 2011. On 11 April 2011, the board announced details of the proposed exchange of contracts for the sale of the Welsh sites and the proposed revised facilities with Royal Bank of Scotland plc ("RBS") to include a new GBP0.25 million working capital facility. The board is of the view that formal agreement of these matters is now imminent.

Eatonfield continues to defer payment of amounts due to certain of its senior lenders and trade creditors. On the basis that (i) the relevant lenders and trade creditors do not demand payment in the short-term and that Eatonfield continues to receive their support; and (ii) the proposed exchange of contracts for the sale of the Welsh sites takes place imminently, which will in turn provide the Group with access to the new GBP0.25 million RBS working capital facility, the board now expects that the Group's existing financial resources will provide it with sufficient working capital funding until early May 2011.

The board confirms that all of the Group's existing bank facilities remain available at the date of this announcement.

The Group has now also commenced presentations to potential investors, with a view to raising further equity to fund Eatonfield to the point where its contract housebuilding operation is forecast to start generating net positive cash flow later this year. The board is seeking to conclude this fundraising by early May 2011.

For further information please contact:

 
 Eatonfield Group plc                    Tel: +44 (0)1829 261 910 
 Brian Corfe (Executive Chairman) 
 Rob Lloyd (Group Chief Executive) 
 Duncan Syers (Group Finance Director) 
 
 Evolution Securities Limited            Tel: +44 (0)113 243 1619 
 Joanne Lake/Peter Steel 
 
 Optiva Securities Limited               Tel: +44 (0)203 137 1904 
 Jeremy King 
 
 Threadneedle Communications               Tel: +44 (0)207 653 9850 
 Graham Herring/John Coles 
 
 

End

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