|
Autumn 1997
|
After an uncertain few weeks, the future looks brighter for MDIS (McDonnell Information Systems) as it successfully competes a recapitalisation project worth about £24.3m.
Following its share suspension some two and a half weeks earlier, dealings resumed on 18th July at 31p but accompanied by a warning that unless their rescue plan was approved by at least 75% of the shareholders, the company might not be able to continue trading.
The rescue proposals included offering new shares at 26p to raise £24.3m and purchase of an option to reduce the £3.8m rent on MDIS' Hemel Hempstead headquarters.
The Extraordinary General Meeting on 12th August approved the offer, the capital reorganisation, and the CHESS joint venture with Fujitsu. The company also changed its name to MDIS Group plc.
Shareholders have formed an action group, stating that although they are supportive of the board and chairman, they want to be reassured about the company's strategy for a return to profitability.
Results for 1996 announced mid-July showed pre-tax losses up again to £49.5m from £39.4m, but interim results for the first half of 1997 show losses before exceptional items had dropped to £3.9m, less than half of last year's over the equivalent period, and below the £4.5m worst-case scenario predicted by the board earlier this summer.
The chairman's statement, issued alongside the results, reflects the company's determination to put its troubles squarely behind it and focus on its future by concentrating on those markets where it has its greatest strengths: the CHESS/Glovia International joint venture and local government and police contracts.
MDIS Group plcLast Updated: 22 July 1999