Wynnstay Group PLC Update regarding Just for Pets (8028Q)
September 14 2017 - 10:18AM
UK Regulatory
TIDMWYN
RNS Number : 8028Q
Wynnstay Group PLC
14 September 2017
AIM: WYN
14 September 2017
WYNNSTAY GROUP PLC
("Wynnstay" or "the Company")
Update regarding Just for Pets
Wynnstay, the agricultural and retail group, provides the
following update on Just for Pets Ltd ("JfP").
As previously reported, the trading environment for JfP, which
comprises 25 stores, has shown a marked deterioration over the last
year. Changes in consumer buying behaviour, coupled with additional
sources of competition and greater cost pressures, have placed an
increasing strain on the business and the subsidiary has become
loss-making. It became increasingly clear that restructuring
measures were required and, as announced in the Company's half year
results on 21 June 2017, a review of the options for the business
was commenced and the Company recognised a goodwill impairment
charge of GBP3.89m in relation to JfP.
Following a careful and extensive consideration of alternative
solutions, including a sale of the business, the difficult decision
has been taken to give Notice of Intention to Appoint
Administrators to the Just for Pets business. The Company intends
to work alongside advisers in order to preserve as much value as
possible for all stakeholders of JfP, including its employees,
customers, suppliers and Wynnstay shareholders.
For the six months to 30 April 2017, JfP generated GBP7.0m of
revenues, approximately 3% of Wynnstay's total revenues for the
period, and an operating loss of GBP0.25m. The Company's total
adjusted operating profit for the same period was GBP4.24m. Current
segmental net assets relating to JfP totalled approximately
GBP2.2m.
Management expects to recognise exceptional charges relating to
the write-off of net assets and associated costs.
Ken Greetham, Chief Executive of Wynnstay, commented:
"This has been an extremely difficult decision to make and we
are saddened by the announcement of the Notice of the Intention to
Appoint Administrators for the Just for Pets business. Having
thoroughly investigated and pursued other options, it has been
concluded that this was the correct path to take, both for Just for
Pets and Wynnstay, given the difficult circumstances in which JfP
has found itself in recent years.
"We will be working closely with advisers to ensure that Just
for Pets employees, customers, suppliers and Wynnstay shareholders
are best served."
Enquiries:
Wynnstay Group plc Ken Greetham, Chief Today
Executive T: 020 3178
Paul Roberts, Finance 6384
Director
KTZ Communications Katie Tzouliadis T: 020 3178
/ Irene Bermont-Penn 6378
/ Emma Pearson
Shore Capital (Nomad Stephane Auton / T: 020 7408
and Broker) Patrick Castle 4090
This information is provided by RNS
The company news service from the London Stock Exchange
END
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