Hardwood specialist DLH Group is planning a rights issue to raise DKr250m to strengthen its capital structure and financial flexibility.
The company, which has implemented a successful restructuring programme involving the divestment of African sawmilling operations and the planned closure of its UK and German offices, has also struck a three-year refinancing agreement, conditional on the rights issue.
DLH plans to hold the equity issue during the first half of 2011.
The company, which will announce its 2010 annual results on March 8, said it expected to have achieved a turnover of above DKr3.4bn for the year and an EBITDA in the order of DKr75m.
DLH expects to record a similar turnover in 2011, with an EBIT of around DKr60m. Its debts are expected to be DKr400-450m by the end of 2011.
“The capital injection marks a new, important step in the transformation of DLH,” said CEO Kent Arentoft.
“Important results have already been achieved and with a stronger capital base, lower debts and a new long-term bank agreement, we’re laying the foundation for DLH’s further growth,” he said.
DLH chairman Asbjørn Børsting said the company’s future looked much brighter than it did two years ago, allowing him to retire from the board with a good conscience.
DLH’s “Go to Market” strategy, launched last December, is designed to position the company as a focused, global wholesaler in timber, sheet materials and wood-based products by 2014.
