Doctors Direct on call for Ofex

The delayed flotation of primary health care provider Doctors Direct is finally taking place. The company, which organises GP visits for paying customers, plans to raise £1 million before expenses via an offer that qualifies for the generous tax breaks available under the Enterprise Investment Scheme (EIS).

Subscribers to new shares of companies qualifying for the EIS can claim 20 per cent income tax relief on up to £150,000 invested in one tax year, and defer any capital gains tax incurred at any time in the three years before the EIS investment is made.

Doctors Direct has been profitable since 1999 and last year turned over £870,000. The company hopes to use the money raised to increase the geographic areas it covers and expand the services it can provide. In addition the group may makes some acquisitions.

To go ahead, the offer, which was originally meant to happen last summer, must raise £500,000. This should be no problem. The company’s valuation, assuming maximum take-up, has been scaled back by nearly a third to £2.1 million.

In addition, Aim investment company Western Selection is committed to buying £375,000 worth of shares. 33-year-old managing director Andrew Rae-McCance is selling £150,000 of shares in the offer to pay off existing stakeholders. He will retain a 50.1 per cent stake in the group.

The offer, which closes on 17 August, is being sponsored by Loeb Aron. The minimum subscription is £2,000. The shares will be listed on Ofex. For a prospectus go to http://www.doctorsdirect.co.uk or e-mail info@loebaron.co.uk.

[29/07/02]