Spice rebuffs Cinven's improved approach

The proposal, in the range of 62p to 65p per share, is subject to the same conditions set out in the original approach which was received in May 2010, including bank financing.

In a statement, Leeds-based Spice said: "We continue to believe this conditional proposal undervalues Spice, and the board has not entered into discussions with Cinven, or any other party in relation to a potential offer for Spice.

"Spice has made excellent progress in executing a clear set of objectives to enhance value for shareholders, and these actions leave the group well positioned for the new financial year and beyond.

"Spice is also today making its scheduled year end announcement of the results for the year ended April 30 2010, a further milestone in the restoration of shareholder value.

"This announcement has not been made with Cinven's consent, and there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made."

In the year ended April 30, Spice achieved revenue of 310.7m, an 11 per cent increase on the year before.

Profit on ordinary activities before tax, exceptional costs and amortisation of intangible fixed assets was unchanged at 31.5m.

However, Spice posted a loss after tax for the year of 56.2m, compared to a profit of 17.2m the year before.

Mr Towers said: "We have made significant progress in recent months and the group is well positioned for the new financial year and beyond.

"Our continuing businesses have strong underlying regulatory and environmental drivers, while the telecoms and gas businesses have been sold. The group is now streamlined, and its cost base and net debt levels have been reduced. The management team is focused on exploiting the platform that has been created.

"Trading in the new financial year has been in line with the board's expectations and I feel very confident about the future of Spice. Our priority remains enhancing shareholder value and I believe that the plans that are being developed for the group's continuing businesses will enhance value for shareholders over the medium term."