Troubled telematics company Minorplanet has raised £1.5 million in new funding after reaching an agreement with lenders. It is also hopeful of securing an additional £1.9 million.

The self-proclaimed “founding father of the UK telematics industry” suffered a £2.5 million loss in the six months to the end of February.

“Creditors have been stretched as cash resources have come under pressure,” it told shareholders.

Several customers have cancelled or deferred orders.

Minorplanet placed more than 3.8 million new shares on to the market, which raised £1.1 million. It also agreed new £400,000 discounting facilities with Siemens Financial Services Limited and ING Lease (UK) to provide additional working capital.

The money will be invested in new products and customer support.

Minorplanet hopes to raise additional funding from an open offer of about £1.9 million of new shares.

It has also converted its existing £750,000 bank overdraft facility to an Enterprise Finance Guarantee Loan.

Finally, it has reached an agreement with HMRC over “significant balance of overdue PAYE, National Insurance and VAT payments”.

Upon completion of the refinancing, Minorplanet will repay HMRC its arrears by August 31, 2010.