Donovan lends Minorplanet £300,000

TERRY Donovan, chief executive of vehicle tracking group Minorplanet, is to loan the company £300,000 to help it return to “financial stability”.

The loan, which is repayable over 24 months, is the first of a series of “proposed actions designed to return the group to financial stability and profitability”, Minorplanet said today.

Leeds-based Minorplanet confirmed last August that it was to raise £3.25m through a share placing.

The £300,000 loan will be active from June 4 and will have an interest rate of  8% over Barclays Bank’s base rate and has secured by a debenture over the assets of the company and a number of its subsidiaries. 

Minorplanet added: “The loan was made to assist the general working capital requirements of the company, including the payment of certain creditor arrears.”
 
The company added that further details of the financial strategy and an update on the company’s trading and financial position will be provided when its 2009 preliminary results are announced later this month.

Minorplanet has previously said that its full year results for the year ended August 31, 2009 will be significantly below market expectations.