May 9: Vindon's £2m to move
OLDHAM-based Vindon Healthcare has raised £2m to fund a move to bigger premises.
The AIM-listed firm has placed 10m shares with institutional and individual investors and plans to use the proceeds to finance new facilities during the early part of next year.
Negotiations are under way over a possible site in Rochdale although no agreement has yet been signed.
Chairman Liam Ferguson said: "We are very encouraged by the significant interest shown in the company and welcome our new investors. The placing will significantly strengthen the company's balance sheet and create the necessary resources to pursue our strategy."
The shares ticked up 0.25p, or just over one per cent, to 23.5p after the announcement.
Vindon, which is currently based at Kiln Green, Diggle, manufactures blood banks, storage chambers, fridges and freezers for clients in the pharmaceutical, food and life sciences sectors. In addition, it stores drugs at various temperatures and degrees of humidity for customers such as AstraZeneca and GlaxoSmithKline as part of their trials for new products such as pills and inhalers.
This is a growing part of Vindon's business and has necessitated the move. Drugs typically need to be stored for up to five years and Vindon receives long-lasting contracts on that basis. Finance director Martin Burrill said: "We are bursting at the seams. We have some temporary facilities at another site in Oldham but we are looking for new premises which will significantly increase our capacity. We will be staying in the area."
He said Vindon, which employs 42 people, was looking to triple its capacity.
The company posted sales of £3.84m for 2006 and profits of £1.06m, but analysts are forecasting a rise in turnover to £4.47m this year, with profits of £1.26m.
A storage facility has opened near Waterford in the Republic of Ireland and a sales team in the United States has secured Vindon's first order.
Around half of Vindon's turnover comes from manufacturing, with the rest from its storage, repairs and maintenance operations.
Kevin Feddy ©MEN
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