Brightside Group PLC : Placing to raise £6.84 million 24th January 2014

Brightside Group plc ("Brightside" or the "Company") Placing to raise £6.84 million (the "Placing")

Brightside Group plc, the specialist insurance broker, announces today it has successfully raised
£6,844,110 by the placing of 45,627,400 new ordinary shares of 1 pence each (the "Ordinary

Shares") at the placing price of 15 pence per share (the "Placing Price"). The Placing, which was carried out by Cenkos Securities plc, was supported by existing institutional shareholders of the Company.

Background to, and reasons for, the Placing

The net proceeds of the Placing will be used to prevent the possibility that Brightside may breach a bank covenant linked to the Company's premium finance facility. Despite the strong operational cash profile of the Company, the possibility of a breach has arisen due to a short term cash shortfall following the payment of legacy deferred consideration and advanced commission, and the covenant testing date falling during the Company's seasonally low cash period.
Following receipt of the net proceeds of the Placing the Directors, following consultation with Clydesdale Bank the providers of the Company's premium finance facility, can confirm there will be no breach of a covenant at the covenant testing date of 31 January 2014. The Directors expect the working capital of the Company to increase as the financial year progresses and the positive cash flow from Brightside's operations is received. Longer term, the Directors expect to utilise the net proceeds of the Placing in the business to increase its working capital and to increase the Company's finance capacity.

Current Trading Update

Unaudited results for the 12 month period ended 31 December 2013 show the Group trading in line with the trading statement released on 16 December 2013. Trading in January 2014 has been as anticipated and is expected to deliver a result in line with management expectations.
As detailed in the trading update released by the Company on 16 December 2013 the current visible total for 2014 online capacity is expected to equate to c£145 million of premium (2013 estimated total £115 million). The Directors remain confident that ongoing negotiations with underwriters will allow them to increase this number during the coming year.

Placing

Subject to Admission, the Company will issue 45,627,400 new Ordinary Shares (the "Placing Shares") which will raise approximately £6.84 million, before expenses, and £6.45 million after the expenses of the Placing. The Placing Shares have been conditionally placed by Cenkos, as agent for the Company, with institutional and other investors in accordance with the terms of the Placing Agreement.
The Placing Shares issued pursuant to the Placing will represent approximately 9 per cent. of the Enlarged Share Capital. The Placing Shares will, following Admission, rank in full for all dividends and distributions declared, made or paid in respect of the issued Ordinary Share capital of the Company and otherwise rank pari passu in all other respects with the existing Ordinary Shares. The Placing Price represents a discount of 17 per cent. to the closing mid-market price of 18 pence per Ordinary

Share as at 23 January 2014 (being the latest practicable date prior to the date of this

announcement).

The placing of 45,627,400 Ordinary Shares is not conditional upon shareholder approval and application will be made for these shares to be admitted to trading on AIM, with Admission expected to take place on 30 January 2014.
The Company has no Ordinary Shares held in treasury and, therefore, following Admission, the total of 501,901,509 Ordinary Shares may be used by Shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
Enquiries:
Brightside Group plc
Paul Chase-Gardener [phone]
Cenkos Securities plc (Nominated Advisor and Joint Corporate Broker)
Bobbie Hilliam / Harry Pardoe [phone]
finnCap (Joint Corporate Broker)
Stuart Andrews / Simon Johnson [phone]
Yellow Jersey PR Limited (Financial PR & IR)
Dominic Barretto [phone]
Anna Legge [phone]
Notes to Editors
Brightside Group plc, (AIM:BRT) is a fast growing insurance broking and financial services group. The Group specialises in delivering market-leading insurance solutions to individuals and businesses. The Group is focused on customer service and operational excellence, adding value for policyholders and business partners alike across all classes of insurance.
Brightside and its associated businesses distribute insurance products online and through UK-based
call centres. The Group's insurance activities are complemented by its financial services businesses.
For further information see - www.brightsidegroup.co.uk