Trading Update and Completion of Fundraising

RNS Number : 3624M
TP Group PLC
28 July 2017

Trading Update and Completion of Fundraising

TP Group (AIM: TPG), the specialist services and engineering group, announces the following trading update for the six months ended 30 June 2017 and completion of the Fundraising announced on 10 July 2017.

Trading update

The Board is pleased to report that the Group has maintained the positive momentum delivered in 2016 and continues to see positive indicators in H1 2017. In the first half of the year, the Company announced confirmation of anticipated significant contracts with the MoD and was admitted to a major technical support services framework. The Group also completed the successful integration of ALS Technologies Limited and Flexible Software Solutions Limited, acquired in February 2017, further enhancing TP Group's product offering.

As evidenced by the announcement of a £1.9 million contract award earlier this week, the Company continues to see a strong business pipeline. This is driven by established service propositions, new engineering opportunities in the UK, Europe and elsewhere and further opportunities arising from the Group's expanded operational footprint.

Accordingly, the Group expects to deliver full year results in line with market expectations.

Completion of Fundraising

In addition, the Board is also pleased to confirm that, following admission of the 336,101,128 new Ordinary Shares issued pursuant to the Fundraising to trading on AIM becoming effective at 8.00 a.m. this morning, that the Fundraising has now completed, raising approximately £20.8 million for the Group, net of expenses, which will be used primarily to help fund the Group's acquisition programme.

Unless otherwise defined, capitalised terms shall have the meaning as those set out in the 'Definitions' section of the announcement issued by the Company on Monday 10 July 2017.

Phil Cartmell, Chief Executive Officer of TP Group, commented:

"We are delighted to have closed such a sizable fundraising today, highlighting the significant progress TP Group has made over the last two years.

"The Board firmly believes the defence, aerospace and government sectors offer scope to accelerate our growth and the strengthening of our balance sheet will enable management to work quickly to consolidate what we believe to be highly fragmented markets.

"I look forward to updating the market on our ongoing progress as we continue to pursue a pipeline of potential growth opportunities and remain confident in the medium term prospects for the Group."