Snoozebox to raise £10m in a bid to save the business

Snoozebox has placed £10.1m worth of shares in a bid to refinance the business.

The portable accommodation provider said that the placing was provisional and had to be passed at the forthcoming general meeting. It added that if the measure was not approved and no alternative option was found directors would be forced to take steps to cease trading.

The £10.1m shares are being offered at a rate of 24p per share.

Last month chief executive Robert Breare resigned as a director of the company. It followed a reshuffle at the business after it reported a £4.4m loss for 2012.

At the time the new executive committee, which includes finance director Lorcan O'Murco and chief operating officer Gary Thompson, warned that after a review of the business it will need further reorganisation, "improved systems and a more rigorous approach to management".

Commenting on the share offer, executive chairman David Morrison said: "We are grateful to our institutional shareholders for their continued support for the business.

The placing announced this morning will enable the company to fulfil its contractual commitments this year and next, as well as provide necessary fuel for growth.

"Notwithstanding the problems of recent months, we believe that the potential of the company remains undiminished and we look forward with optimism."

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