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Stanley Gibbons warns on FY, flags placing

By BFN News | 07:29 AM | Tuesday 23 February, 2016

Stanley Gibbons Group said directors believe that for the year to March 31, 2016, the company will report an adjusted loss before tax of GBP1m-GBP2m. It also unveiled plans to raise about GBP10m via an equity hike. "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," the company said in a statement. "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." Having considered the various alternatives, directors are now confident an equity raise is the most expedient and efficient method by which to reinforce its working capital position. Accordingly, the Group is in the process of raising approximately GBP10m of new equity. 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. Story provided by

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