IDE secures additional funding as restructuring continues

MSP looks to recover from difficult 2018 when its share price plummeted over 90 per cent

Troubled service provider IDE Group has received additional funding as its new regime continues plans to turn the business around.

In a note to the London Stock Exchange, IDE said it is looking to raise £10m by way of secured loan notes.

Existing shareholders MXC and Blake Holdings will subscribe to £5.3m of the target amount, while the remaining £4.7m will be offered to existing shareholders.

IDE said the cash generated will be used to pay its £8.25m debt facilities with NatWest.

Andy Parker, executive chairman at IDE, said: "I am pleased to be able to announce that we have secured new debt funding for IDE and that we are able to offer all shareholders the opportunity to participate in such funding.

"The loan notes provide long-term funding for the group, providing a secure financial platform on which we can build.

"Significant work has been put into right-sizing the business and I am pleased with the progress we have made. We start the new financial year with a cost base proportionate to our level of contracted revenue."

IDE has been restructuring since a new management team took over, with executive director Ian Smith saying the firm was close to bust under its previous leadership - accusing his predecessors of failing to integrate acquisitions.

The firm has since sold off 365ITMS and cut around £7.2m from its annual staff costs.