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Secret admirer chats up Redstone

Microscope contributor

Comms integrator Redstone has received a preliminary approach from a potential buyer that could result in an offer being made for "all or parts of the group".

Redstone announced the approach in a stock exchange announcement this morning, following a shock share price bounce, but would not provide further details.

The firm stressed that there was no certainty that an offer would be made, or on what terms any offer might be made.

This comes just days after the company revealed it was revising its earnings forecast downwards and had not been able to resolve the repayment timetable for a loan facility on one of its divisions.

Following a review of its accounts with auditors the telecom and networking specialist revised its EBITDA numbers down from £7.5m to between £5-£6m.

It also sold its telecoms business to fast-growing Daisy Group in August for £17m.

Shares at hard-up Redstone have plummeted in the past 12 months, down from nearly 47 pence to just 3.25 pence, valuing it at just £8.7m.

In contrast, Daisy Group is now worth £244m, and going by previous form has already been suggested as the mystery bidder.


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