Statement Regarding Profit Forecast

RNS Number : 0774N

Home Retail Group Plc

26 January 2016

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

26 January 2016

For immediate release

Home Retail Group plc

Statement Regarding Profit Forecast

On 14 January 2016, Home Retail Group plc ("Home Retail Group" or the "Company") published its trading statement for the 18 weeks from 30 August 2015 to 2 January 2016.  The statement contained the following sentence which is considered to be a profit forecast for the purposes of Rule 28 of the City Code on Takeovers and Mergers (the "Code"):

"As a result of the most recent trading period, we expect that Group benchmark profit before tax for the financial year ending February will be around the bottom of the current range of market expectations of £92m to £118m" (the "Profit Forecast").

The Panel Executive has granted a dispensation from the requirement for Home Retail Group to publish reports as required by Rules 28.1(a)(i) and (ii), pursuant to Note 2(b) on Rule 28.1 of the Code.  As required by Note 2(b) on Rule 28.1 of the Code, the directors of Home Retail Group confirm that the Profit Forecast remains valid and has been properly compiled in accordance with the company's accounting policies. 

In accordance with Rule 2.6(a) of the Code, Sainsbury's has until 5.00pm on 2 February 2016 (or such later time and / or date as may be agreed by the Takeover Panel in accordance with Rule 2.6(c) of the Code), to announce either a firm intention to make an offer for Home Retail Group in accordance with Rule 2.7 of the Code, or that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

Enquiries

Home Retail Group plc

Richard Ashton, Finance Director                  [phone]

Mark Willis, Director of Investor Relations

BofA Merrill Lynch - Financial Adviser and Corporate Broker

Jonathan Bewes                                               [phone]

Eamon Brabazon

Geoff Iles

Luke McMullan

RLM Finsbury - Public Relations Adviser

Rollo Head                                                          [phone]

Important notice related to financial adviser

Merrill Lynch International ("BofA Merrill Lynch"), a subsidiary of Bank of America Corporation, is acting exclusively for Home Retail Group in connection with the matters set out in this announcement and for no one else and will not be responsible to anyone other than Home Retail Group for providing the protections afforded to its clients or for providing advice in relation to the matters set out in this announcement.

Disclosure requirements of the Code

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made, can be found in the Disclosure Table on the Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel's Market Surveillance Unit on [phone] if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

Rule 26.1 disclosure

In accordance with Rule 26.1 of the Code, a copy of this announcement will be available at www.homeretailgroup.com by no later than 12 noon (London time) on 27 January 2016.

The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

Forward looking statements

This announcement may contain certain "forward looking statements". These statements as based on current expectations and views of future events and developments and are naturally subject to uncertainty and changes in circumstances.  Forward looking statements typically include words such as "believe", "expect", "estimate", "intend", "anticipate" and words of a similar meaning. All statements other than statements of historical facts are forward looking statements. You should not place undue reliance on such forward looking statements, which reflect the current views of the management of the Company, are subject to numerous risks and uncertainties and are dependent on many factors, some of which are outside the Company's control. There are important factors, risks and uncertainties that may cause actual outcomes and results to be materially different. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

 

END

 

 

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