This article appeared in The Press on Thursday 12th July 2007.

Aiming-High Firm Floats

Investors have scrambled to be part of the flotation of a York based engineering company, which this week set out to raise £12.5 million on the Alternative Investment Market (AIM). Mount Engineering Plc, which before the flotation was valued at £15 million, was said today to have been 40 per cent oversubscribed on the London Stock Exchange’s international market for smaller growth companies.

The flotation comes hard on the heels of the company’s acquisition of Birmingham- based engineers Raxton for £4.5 million and an institutional fundraising of £12.5 million.

It brings to three the number of engineering companies handled by the two-man headquarters in The Mount, York, including Redapt Engineering, also of Birmingham, and Hi-Flow Valves, of Suffolk which between them employ more than 200 people. Raxton makes specialist equipment in the chemical industry.

Richard Feltham, of York accountants Garbutt and Elliott said: “ The strength of the management team and the specialist nature of the industry sectors the group serves combine to prove a potent force in the market.”

Philip Ashworth, partner of law firm Dickinson Dees, in York, who handled the acquisition and float, said: “This move will allow Mount Engineering to expand and build on impressive portfolio of engineering companies. The fundraising has attracted the interest of a significant number of City institutions, and I feel confident that a successful AIM listing will usher in a period of consolidation and growth. There is every indication that Mount will have a very healthy future. We are looking at the prospect of more acquisitions.”

Mr Ashworth said: “ The Alternative Investment Market, which is sub-market of the London Stock Exchange, allows smaller companies to float shares with a more flexible regulatory system than is applicable to the main market. It is the perfect vehicle for the Mount.”