Grafenia bond issue tops £14m

Jo Francis
Wednesday, January 25, 2023

Grafenia has issued more bonds – its second tranche within the space of two months.

Grafenia: more buys in pipeline
Grafenia: more buys in pipeline

The Aim-listed PLC has added to the £3.2m of bonds issued in December with a further £3m-worth taken up by investors, the group announced today (25 January). 

The fresh bonds were issued at 85% of their nominal value, raising around £2.55m before expenses to fund Grafenia’s ongoing software M&A spree.

Just last week Grafenia expanded into a new, non-print area with the £3.5m acquisition of Care Management Systems.

On the new bonds, acting CEO Gavin Cockerill commented: "We continue to make progress with our strategy to become a serial acquirer and permanent home for vertical market software businesses.

“Our third acquisition of the financial year was completed earlier this week. The funds being raised will be applied to further potential acquisitions we have in the pipeline.”

In summer 2020 Grafenia put a facility in place on the Frankfurt Stock Exchange to issue up to £50m of “perpetual bonds” and issued £3m of bonds at that time in order to bolster cashflow and support its M&A plans. 

This was followed by a further £5m of bonds in September 2022 when the business acquired ecomms specialist Vertical Plus.

Grafenia will not pay any interest on the new tranche of bonds until July 2023. Thereafter, interest of 6% will be payable annually in arrears. 

The bonds are unsecured and rank on an equal footing with past and future bonds. 

Grafenia’s financial year runs to 31 March. Sales on its continuing software business rose by 28.5% to £8.92m in the financial year ending March 2022. 

It sold its manufacturing wing to PFI Group in May 2022. 

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