PLUS Reports Primary Markets Activity For 2009 - Full Year Reveals Noteworthy Admissions And Corporate Activity

In a year characterised by difficult market conditions, the PLUS stock exchange reported steady performance in 2009 in terms of new admissions and corporate activity.

Although 2009 was generally quieter than recent years across equity markets some 30 companies applied to join PLUS during the year and 18 of these had been admitted by the end of December. Two companies joined in the last month of 2009:

• HealthyDays Group plc (market cap £3 million), which markets products to assist people with mobility difficulties
• Wessex Exploration plc (market cap £5 million), a hydrocarbon exploration company with interests across Africa and within the UK.

Against the challenging economic background, there was still a healthy level of corporate activity on the exchange with a number of PLUS companies using their quote to make acquisitions. Notable transactions included:

• Rak Real Estate acquired Rafco in the largest reverse takeover ever on PLUS. The new company was admitted with a market capitalisation of over £600 million, making it the biggest on the market.
• Shepherd Neame purchased 13 freehold pubs from Punch
• ARH Leisure Investments acquired Frontier IP Limited, a subsidiary of AIM quoted Sigma Capital Group plc
• Cantina Augusto also expanded its business in the restaurant sector through the acquisition of Fast Consultants Limited
• contract catering business Bright Futures Group acquired Jill Bartlett & Company Limited.

Markets continued to prove challenging for fund-raisings, but the number of PLUS companies completing separate rounds of fund-raising reached a record of almost 150, with several companies returning to the market to access capital on more than one occasion. A few companies raised funds at admission, including:

• 3D Diagnostic Imaging (£2 million)
• Worship Street (£1.3 million)
• Newbury Racecourse ended the year with the announcement of a £6.4 million rights issue

During the year PLUS continued to broaden its focus as a market for a diverse range of asset classes and built its community of corporate advisers. Highlights include:

• Six new corporate advisers were admitted – Cenkos, Alexander David Securities, Strand partners, ZAI, Strata, and Hybridan – who will help the market to grow further in 2010.
• Contingent Value Rights (CVRs), a completely new and innovative instrument, were admitted to PLUS in January 2009 following the acquisition of British Energy by EDF. These Nuclear Power Notes were issued by Barclays Bank Plc and supported by leading market participants such as BoA Merrill Lynch, JP Morgan Cazenove and BNP Paribas.
• The first Global Depository Receipts (GDRs), issued by the Bank of New York Mellon, came to market in February 2009.

“2009 was an exceptionally difficult year, but we saw continued momentum and good levels of activity on the PLUS stock exchange’s primary markets. We’re optimistic for the coming year as PLUS continues to broaden and develop its primary market offering and increasingly work alongside issuers and advisers to facilitate the admission of new companies, as well as non-standard instruments,” said Head of Capital Markets, Paul Haddock.