It is in talks with banks but said the rights issue, underwritten by Investec and set to take place before the end of the year, was in its “best interests”.
New chief executive Meinie Oldersma, who is conducting a strategic review, said “an over-emphasis on expansion” created a “lack of focus” and significantly increased costs.
“This is a good business, but it will require time to get that focus back,” he added.
Peel Hunt forecast a pre-tax loss of £5 million for this year and, pending the review, “no more than break-even” in 2017.
