New funds for Shieldtech as shares are restored

BODY ARMOUR specialist Shieldtech has secured new funding and had its shares restored on AIM after a five month suspension.

The shares were suspended automatically in December after the company failed to publish its report and accounts within six months of the year-end.

The board has spent the time attempting to refinance the company and this morning it announced a £1.1m funding package subject to shareholder approval.

Shieldtech plans to offer loan notes to three investors: Former Deloitte partner Bruce Gordon; existing shareholder Steve Jenkins; and Derek James, billed as a “private individual”.

If the deal goes ahead Shieldtech’s bank said it will provide a £250,000 overdraft and a £900,000 loan.

Chairman Tim Wightman said: “We are delighted to be in a position to announce the restoration of trading in Shieldtech’s shares. With a more secure financial base, Shieldtech will be able to capitalise on some exciting opportunities through innovation in our product range and our strengthened international sales network.

“We have laid the groundwork, internally and with key suppliers, to be ready to present new, innovative, cost effective solutions, to existing customers and to new prospects in the UK and overseas.”

Shieldtech’s funding worries began last summer after its bank cut its lending after the business posted an operating loss of £700,000.

Today it said sales improved in the six months to December 31. Turnover more than doubled to £5m and the business made an operating profit of £200,000.