Penrice Soda Holdings Ltd is expecting further profit growth in the current financial year with its key chemicals & quarry/mineral business groups all enjoying favourable market outlooks, chairman Mr John Heard told the annual meeting in Adelaide 28 October. However, he warned that 1H 2008 results would be adversely affected by market adjustments with a bottom-line loss expected. The board believed the 2H would see any 1H deficiency recovered, enabling the full-year result to be better than 2007/08. Penrice also announced details of an institutional placement to be followed by a share purchase plan offer to eligible retail shareholders. The placement, which would be co-managed by ABN AMRO Morgans & EL & C Baillieu Stockbroking, was targeting an AUD 8.5M raising by issuing 6.8M shares at AUD 1.25 each, equivalent to 15% of the company's capital. An existing Penrice shareholder, London City Equities Ltd, had already committed to participating in the placement and was expected to emerge as a key investor with a shareholding of around 7% while underwriting up to AUD 2 million of the share purchase plan.
