Ashley (Laura) Hldgs PLC Response to press speculation (1796D)

TIDMALY

RNS Number : 1796D

Ashley (Laura) Hldgs PLC

17 February 2020

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 596/2014 ("MAR").

16 February 2020

For immediate release

LAURA ASHLEY HOLDINGS PLC

Response to press speculation

Laura Ashley Holdings PLC (the "Company" and, together with its subsidiaries, (the "Group") notes the recent press speculation regarding its financial position.

Trading during the current financial year has continued to be challenging. For the 26 weeks to 31 December 2019, total Group sales were GBP109.6m (H1 2018: GBP122.9m), a fall of 10.8%. The decline in total revenue was due to the market headwinds and weaker consumer spending during the period, which led to a decline in sales of bigger ticket items.

Recent movements in the Group's stock and customer deposit levels have led to a reduction in the amount that the Group can draw down under its working capital facility with Wells Fargo, the lender to the Group. The Company confirms that Wells Fargo and the Company's majority shareholder MUI Asia Limited, are discussing arrangements that will allow the Group to utilise sufficient funds from the Wells Fargo facility to meet the Group's immediate funding requirements and to draw down additional amounts to meet ongoing working capital needs for the Group in the short to medium term. These arrangements do not involve a cash injection by MUI Asia Limited into the Group.

The Company welcomes the discussions between MUI Asia Limited and Wells Fargo and is proactively monitoring the situation closely. If the Group remains unable to access the requisite level of funding, then the Company will need to consider all appropriate options.

In addition to the discussions between MUI Asia Limited and Wells Fargo, the Company is well advanced in developing its turnaround strategy, the execution of which remains at an early stage, but the management team is encouraged by the early signs. Sales were flat for the first 7 weeks of trading this year.

The Company expects to announce its interim results for the 6 months ending 31 December 2019 on Thursday 20 February

Andrew Khoo, Chairman, commented:

"We acknowledge that recent trading conditions, in line with the overall UK retail market, have indeed been challenging. There is however a robust plan in place to turn the business around and the Board of Directors is confident and optimistic that the recent appointment of Katharine Poulter will enable the business to execute this broad based strategy. The major shareholders have indicated their continued confidence in the business and are fully supportive of the management team and execution of the transformation plan."

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Sagar Mavani, Chief Financial Officer.

LEI: 213800GTYRHRBJKABN84

Enquiries:

 
 KCNg/KatharinePoulter/Sagar                                   020 7880 
  Mavani                          Laura Ashley                  5100 
                                                               020 7404 
 Anita Scott / Alice Gibb         Brunswick                     5959 
 Rick Thompson / Michael                                       020 7894 
  Boot                            Cantor Fitzgerald Europe      7000

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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