Millfield has boosted its working capital by £3.6m through the issue of 6.4 million shares in a move that the group's directors hope will enable it to become self-financing.
The issue, which increases the amount that Millfield has raised since its March 2001 flotation to £44m, will generate cash which the group says will be invested in its IT systems and other exceptional trading expenditures.
The firm believes the cash injection will rapidly lead to self-financing which finance & operations director Harry Roome says “implies profitability”.
In a trading update ahead of the presentation of its accounts, Millfield also said it expected an increase in turn-over of more than 50 per cent in the year to March 31.
With improving market conditions boosting confidence, Millfield said productivity has grown, with average submitted business levels up from £85,000 in the year to March 31, 2003 to £100,000.
The accounts are also likely to show losses of around £3m for the second half of the year, a significant reduction from the first half of £5.65m.
But the group says accounting requirements will reduce its reported turnover by 20 per cent, with an estimated £2m negative impact on earnings split between the two halves of the year.
However, Millfield says the changes will have no impact on the fundamentals of the business or its plans for the future.
It admits it is still in negotiations with a number of parties to sell off part of its 41 per cent stake in wrap project Lifetime.
Roome says: “We are reporting excellent progress for the business and we are continuing fast towards profitability. Generally, it feels like a positive picture.”