London-based architecture group SMC says it is holding an open offer to shareholders in the hope of raising £13.3m to help drive its share price following a disappointing year on the stock exchange, according to a report on propertyweek.com.
The report says SMC needs to raise 19 new shares for every five it holds following a drop in share price from 183p in January to 8.25p today.
SMC chairman Sir Rodney Walker issued a statement to investors following the company’s 2007 first half results saying it “highlighted a number of weaknesses and inconsistencies and pointed the need for radical corrective action”.
This came as SMC made staff reductions in underperforming business units, following the closure of certain offices earlier in the year.
The move comes after a period of rapid expansion and acquisitions of companies such as Alsop.
Walker says SMC continues to win new business accounts across a range of market segments but despite this, earlier warnings have still caused SMC to take action to ease shareholder concern.
By staff writer