Evolution hunts for #1.5m missing link

Anglo Corporation saviour seeks cash injection for fund-raising float on Ofex trading facility

Evolution Holdings, the owner of defunct retail and distribution outfit Anglo Corporation, is touting itself around private investors to raise up to #1.5 million and float on the Ofex trading facility.

Brian Hocken, marketing director at JP Jenkins, which regulates the Ofex trading facility, confirmed that Evolution Holdings had applied to float itself and was looking to raise between #1 million and #1.5 million. He said Ofex was a means for good quality companies to raise funds, that were too small to be listed on AIM.

There are about 160 companies quoted on Ofex, one of which is National Car Parks (NCP), headed by Sir Donald Gosling. His son David ran Anglo Corporation with Stuart Tidy. According to Tidy, MD at Anglo Technology Group, Anglo had previously looked at floating on Ofex, but decided it was too late to affect the company?s financial status.

According to a prospectus, Evolution Holdings will place 2.5 million ordinary shares with an issue price of 60 pence. The market capitalisation will be #6 million. The company is forecasting earnings per share at 7.4 pence. The share issue is expected to be completed by the end of the month.

The document also predicted that Evolution would show a turnover in excess of #30.1 million and pre-tax profits of #1.08 million.

William Tebbett, analyst at Butterfield Securities, which is acting as Evolution?s broker and adviser, said Ofex was an effective means of raising cash, as it can cost #250,000 to float a company on AIM. He said Butterfield would spend the next few weeks selling the shares to investors.

Evolution was not available for comment.