Stanley Gibbons Group PLC Funding and Trading Update (8166P)
February 23 2016 - 2:01AM
UK Regulatory
TIDMSGI
RNS Number : 8166P
Stanley Gibbons Group PLC
23 February 2016
23 February 2016
THE STANLEY GIBBONS GROUP PLC
(the "Group")
Funding and Trading Update
On 13 January 2016, the Group announced that it was considering
a number of fundraising alternatives to reinforce the Group's
working capital position prior to 31 March 2016. At that time the
Board believed that an equity raise might be comparatively
unattractive as the Group's market capitalisation was less than its
Net Asset Value. However, having considered the various
alternatives, the Board is now confident that an equity raise is
the most expedient and efficient method by which to raise the
capital necessary. Accordingly, the Group is in the process of
raising approximately GBP10.0 million of new equity (the
"Fundraising"). The Board intends that the Fundraising will be
executed in a manner that recognises the pre-emption rights of
existing shareholders insofar as is possible and will make a
further announcement regarding the Fundraising next week.
It is intended that the proceeds of the Fundraising will be used
to support a rationalisation exercise, to complete the integration
of previous acquisitions and to provide the additional working
capital necessary to allow the Group the financial flexibility to
trade efficiently during this period. The Board has already
initiated a review of the business, particularly its cost base and
effective utilisation of properties and other resources. The Board
has identified and begun to implement cost savings which will
amount to at least GBP5.0 million on an annualised basis and has
appointed Evolution Securities China Limited ("Evolution") to
assist with this review. Clive Whiley, Managing Director of
Evolution, has extensive experience of restructurings and
post-acquisition integration and it is intended that following the
completion of the Fundraising he will be appointed as a Director of
the Group.
In addition, the proceeds of the Fundraising will be used to
repay approximately GBP6.0 million that has been made available to
the Group by way of an additional overdraft facility repayable by
31 March 2016 and which is expected to be substantially drawn
before completion of the Fundraising. The Group's total gross
indebtedness at 31 January 2016 was GBP22.6 million and it is
expected that following completion of the Fundraising, the total
bank facilities available to the Group will amount to GBP19.5
million. These facilities will not be due for review until 31 May
2017.
The Group has continued to experience lower revenues throughout
the business, with sales of rare collectibles to high net worth
clients being at a lower level than expected and trading being
particularly difficult in the interiors division. Additionally, the
integration of recent acquisitions has still not achieved the level
of cost savings that is required and there has been continued
investment in the online platform. As a result of these factors,
the Board now believes that for the year to 31 March 2016 the Group
will report an adjusted loss before tax of between GBP1.0 million
and GBP2.0 million.
The Board believes that with the benefit of additional capital,
the actions referred to above and a renewed focus on the core
business, the Group will be able to deliver an improved and more
sustainable performance in the future.
The Group is also announcing today the appointment of BDO
Limited as auditors following the resignation of the current
auditors because they consider the risks and uncertainties
associated with the audit to exceed the level that they are willing
to accept.
The Group has today appointed finnCap Ltd as its Financial
Adviser, Nominated Adviser and Broker with immediate effect.
For further information, contact:
The Stanley Gibbons Group plc
Michael Hall, Chief Executive +44 (0)1534 766
Donal Duff, Chief Finance Officer 711
finnCap Ltd (Nomad & Broker)
Stuart Andrews / Christopher
Raggett (corporate finance)
Tim Redfern / Simon Johnson +44 (0)20 7220
(corporate broking) 0500
+44 (0)20 7920
Tavistock (Financial PR) 3150
Lulu Bridges / Niall Walsh
The following information regarding the appointment of Clive
Peter Whiley, aged 55, is disclosed under Schedule 2(g) of the AIM
Rules for Companies:
Current directorships Former directorships and/or
and/or partnerships: partnerships (within the
last five years):
Camper & Nicholsons Marina Darwin Strategic Limited
Investments Limited Christows Limited
China Venture Capital W Deb MVL PLC
Management Limited Williams de Broe Limited
Evolution Securities China
Limited
First China Venture Capital
Limited
Grand Harbour Marina plc
Y-LEE Limited
Details of voluntary liquidations:
On 30 October 2000, the directors of XLIV Limited (formerly
Brimley & Co., a company of which Clive Whiley had been a
non-executive director in 1999) voluntarily appointed a liquidator.
No costs or dividends were expected to be borne or accrue to the
parent company, Hemscott.net (formerly named Bridgend Group PLC), a
company of which Clive Whiley had been an executive director in
1999.
At the date of this announcement, Mr Whiley does not own any
ordinary shares in the Group.
There are no further disclosures required under Schedule 2(g) of
the AIM Rules for Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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