TETRA communications network specialist Sepura (SEPU) has pulled the trigger on a much-needed cash call, announcing details of its £65 million fund raise late on Monday alongside full year figures. This will not come as a surprise to Shares readers, we flagged the company's desperate dash for cash at the start of May, which you can read here.

Here's what you need to know as an investor:

On the cash call...

-£65 million priced at 35p per share, that's a massive 53% discount to the pre-announcement 74.75p close on Friday, net proceeds total £60.6 million, so an expensive exercise with banker fees of £4.4 million, nice work if you can get it;

-£43.5 million raised via underwritten placing with institutional stake owners, but given the huge discount, serious arm twisting was clearly needed;

-Another £21.5 million will be raised through an extra share placing and open offer, which importantly means existing small shareholders can at least participate if they choose (on a 1-for-3 basis, so private investors can apply for one new share for every three previously held);

-Effectively doubles the shares in issue to approximately 371 million;

-Share price gets hammered, collapses by more than 42% since announcement and is down 78% since start of April;

-Fresh cash will be largely used to shore up the firm's battered balance sheet;

On full year figures...

-Full year to 1 April (insert your own April Fool's Day gag here);

-Revenues of €189.7 million, up 45% but mainly because of Teltronic acquisition (analysts at Megabuyte estimate 11% organic growth;

-EBITDA (earnings before interest, tax, depreciation and amortisation) down marginally at €16.5 million;

-Previous consensus was for €30.5 million EBITDA on €210 million revenue, according to Megabuyte;

-Net debt of €119.4 million;

On trading...

-Business impacted by softening UK reflecting the new emergency network, oil and gas impacts in other markets, Brazil weakness, slower than expected growth in its DMR (Digital Mobile Radio) and Applications divisions, higher costs due to a stronger US$ and two delayed contracts in Mexico, cash was also hurt by higher stock levels, slower customer payments, and costs related to Teltronic;

-Plans to exit DMR segment;

Analysts say...

'Sepura has belatedly sought to fix what was always its major weakness - turning profits into cash. The net effect is that revenues and EBITDA will be hit by €24 million and €11 million in the current fiscal year,' says Megabuyte's Philip Carse.

The analyst continues: 'The good news is that the order book is at a record €75 million, reflecting still positive market dynamics, and the company will still report growth in fiscal 2017, with guidance of revenues and EBITDA of about €205 million and €27 million, up 8% and 64% respectively.'

In conclusion: 'This proves once again the mixed adage of revenue is vanity and profit is sanity, but the key to a successful business is recognising that cash is king,' states Carse.

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