Service Point is planning a capital increase (???)

An article about the capital increase (share issuance) that Service Point is apparently planning to do:

One of my blog-readers brought this one to my attention this morning. This article comes from the web-site of ZEPHYR, http://zephyr.bvdep.com/ About ZEPHYR……… ZEPHYR contains information on M&A activity, IPOs, joint ventures and private equity deals, with no minimum deal value.

Here’s what the article said:

Service Point plans fundraiser:
report, posted on Wednesday, 30 Jun 2010 14:38

Spanish print and reprographics group Service Point Solutions is planning a capital increase that could bring in EUR 10.00 million, according to Expansión.

The group incurred a net loss of EUR 10.02 million in 2009 and has already called for cash this year, tapping shareholders for EUR 21.77 million in a one-for-five rights issue in February.

Its latest planned capital increase could involve a stake of around 11.1 per cent of its post-issue equity, while the stock placement four months ago involved a 16.7 per cent interest.

Like many sectors reliant on a buoyant marketing industry, printers have been hard hit by the events of the last 18 months.

The group, which has service centres across Europe and the US, is engaged in digital reprographics and document and facilities management.

In the Nordic countries it has an online offering known as Repronet. Its international distribution network Globalgrafixnet comprises of digital reprographics companies in 21 countries.

In a Q1 2010 earnings release Service Point said improvement is gathering momentum; at EUR 4.30 million, earnings before interest, tax, depreciation and amortisation (EBITDA) – before non-recurring charges – was higher than it had been for four quarters and 79.2 per cent up on the EUR 2.40 million recorded in Q4 2009.

However, if a non-recurring cost of EUR 1.30 million is accounted for, EBITDA was flat year-on-year.

Service Point has been trying to cut costs and stimulate sales and says the performance of its new customer book is “healthy”.

This is not reflected in Q1 2010 revenue, which was EUR 52.26 million compared with EUR 54.41 million in Q4 2009 and EUR 58.69 million in Q1 2009.