Pre-Close Trading Update


 
TIDMSTTM 
 
Strontium Plc 
 
                        ("Strontium" or the "Company") 
 
                           Pre-Close Trading Update 
 
Strontium, the AIM quoted consultancy specialising in the identification and 
development of high growth potential SMEs, is pleased to announce that since 
the first half results were reported in March 2010 trading has remained 
positive in the second half of the financial year with unaudited revenues, 
profit and cash increasing compared to the previous period. 
 
During the 12 months to 30 June 2010 Strontium, in difficult market conditions, 
continued to focus on the growth of its existing businesses by expanding its 
client base. It also focussed on tight financial control and cash collection. 
The Board believes that because of these prudent steps it is able to return 
improved performance. 
 
In June 2010, the Board announced the disposal of its Australian subsidiary - 
The Learning Eye PTY Limited. The disposal, which was at a premium to the total 
investment prior to disposal, demonstrates Strontium's ability to generate a 
return on its investments. 
 
Although this subsidiary has been sold the Board is keen to forge partnerships 
in Australia and will continue to market its Miad medical training products in 
the territory. 
 
The sale of the Australian subsidiary and the enhanced trading performance 
during the full year strengthened the Company's Balance Sheet with unaudited 
net cash as at 30 June 2010 of approximately GBP650,000. 
 
Related Party Transaction 
 
To further strengthen the Company's Balance Sheet and to provide a platform for 
additional growth the Company has entered into a GBP400,000 loan facility (`Loan 
Facility'). The Loan Facility is being provided by Michael Metcalfe and Colin 
Brumpton, both of whom are directors of the Company. 
 
The terms of the Loan Facility are set out below:- 
 
Principal up to GBP400,000 
 
Security Unsecured 
 
Term Up to 4 years 
 
Interest rate 4% above base rate 
 
Directors of a Company are considered to be a related party pursuant to the AIM 
Rules. The Loan Facility is also deemed to be a related party transaction 
pursuant to AIM Rule 13. 
 
David Barker, a director of the Company who is independent of the Loan 
Facility, considers, having consulted with Cairn Financial Advisers LLP, the 
Company's Nominated Adviser, that the terms of the Loan Facility are fair and 
reasonable insofar as the Company's shareholders are concerned. 
 
The Learning Eye (Switzerland) AG 
 
The Board is pleased to announce the establishment of The Learning Eye 
(Switzerland) AG based in Zurich to support the Company's growing business in 
Europe. The first major client in Switzerland is Schindler. 
 
Proposed share capital reorganisation 
 
The Board also announces that it intends to propose a share capital 
reorganisation comprising of a capital reduction, the result of which will 
enable the Company to pay dividends or undertake share buy-backs should the 
Board think this appropriate. 
 
As market conditions improve, and in the light of the improved cash position, 
the Board will continue to seek out and selectively acquire high growth 
potential SMEs and forge partnerships both inside and outside Europe to provide 
improved services to our clients. The Company will continue to recruit 
high-quality staff to reinforce its team and to enhance its client proposition. 
 
For the year ending June 2010 the Company was profitable, debt free and cash 
generative and the Board is expecting to announce preliminary results for the 
year ended 30 June 2010 in early December 2010. 
 
                                  ** ENDS ** 
 
For further information visit www.strontiumplc.com or contact: 
 
Strontium plc        David Barker   Tel: +44 (0) 78 4337 
                                    5764 
 
Cairn Financial      Liam Murray    Tel: +44 (0) 20 7148 
Advisers                            7903 
 
SVS Securities       Ian Callaway   Tel: +44 (0) 20 7638 
                                    5600 
 
Yellow Jersey PR     Dominic        Tel: +44 (0) 20 8980 
                     Barretto       3545 
 
 
 
END
Strontium (LSE:STTM)
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