TIDMHRN
RNS Number : 8590W
Hornby PLC
17 November 2017
HORNBY PLC
HORNBY ANNOUNCES INTERIM RESULTS AND NEW STRATEGY
Hornby PLC ("Hornby" or the "Group"), the international models
and collectibles group, today announces its interim results for the
six months ended 30 September 2017, together with a new strategy
and an equity fundraising to support the new strategy and to
finance an acquisition.
Interim Results Highlights
-- Group revenue of GBP17.0 million (2016: GBP21.9 million)
-- Statutory loss before taxation for the period of GBP5.7
million (2016: loss of GBP4.7 million)
-- Group loss before tax and exceptional items of GBP4.6 million (2016: loss of GBP3.3 million)
-- Net debt of GBP4.7 million (2016: GBP2.1 million)
New strategy, equity fundraising and acquisition announced
today
-- Reinvigorate and grow key brands through an additional GBP1.0
million investment in capital expenditure to support new product
development
-- Grow our European brands through improved product offering and engagement with consumers
-- As announced on 17 October 2017, to maximise the value of its
brands over the longer term, the Group will no longer offer large
quantities of stock at a discount
-- Further streamline the Group's systems and processes by
utilising the industry experience of the new operational management
team
-- GBP12.0 million equity placing and open offer to support
delivery of the Group's strategic objectives, strengthen the
Group's balance sheet and to fund the acquisition
-- GBP1.6 million acquisition of a 49 per cent. non-controlling
interest in LCD Enterprises Limited (majority owned by Lyndon
Davies), the holding company of Oxford Diecast Limited, subject to
shareholder approval
-- Renegotiation of existing banking covenants to align them to
the new strategy through to 31 December 2019
Lyndon Davies, Hornby Chief Executive, commented:
"The review of the business, operations and its strategy has
revealed opportunities to improve performance. The strategy we are
announcing today to invest in Hornby's key brands, to instigate a
clear pricing policy and to seek additional funds to further
strengthen its balance sheet, I believe, will provide the platform
for long term sustainable profitability and cash generation. By
simplifying and improving basic business process, together with
better selection and delivery of the highest quality products, we
will re-establish the value of our brands in the eyes of consumers
and collectors alike."
-ends-
17 November 2017
For further information contact:
Hornby PLC 01843 233500
Lyndon Davies, CEO
David Mulligan, CFO
Liberum (NOMAD & Broker) 020 3100 2222
Neil Elliot
Neil Patel
Capital Access Group 020 3763 3400
Scott Fulton
Note:
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public domain. If
you have any queries on this, then please contact David Mulligan,
CFO of the Company (responsible for arranging release of this
announcement) on 01843 233500.
INTERIM REPORT FOR THE SIX MONTHSED 30 SEPTEMBER 2017
Strategic Review
Since the announcement of his appointment as CEO of Hornby on 3
October 2017, Lyndon Davies has led the Board in undertaking a
review of Hornby's strategy. Mr Davies, together with operational
consultants Tim Mulhall and Simon Kohler, have used their combined
industry experience totalling nearly 100 years to conduct an
initial review of the Group's business, operations and its
strategy. As a result of that review, the new strategy (as
summarised below) has been identified by the Board and has the
potential to drive growth and operational efficiency with a view to
returning Hornby to sustainable profitability and positive cash
generation.
The key elements of the new strategy are as follows.
-- Reinvigorate key brands and products
-- Grow our European brands
-- Maintain appropriate product pricing
-- Streamline the Group's systems and processes
Acquisition
Hornby have also today entered into an agreement to acquire a 49
per cent., non-controlling interest, in LCD Enterprises Limited
("LCD") (which is majority owned by Lyndon Davies), the holding
company of Oxford Diecast Limited, for a cash consideration of
GBP1.6 million. Given Mr Davies' appointment as CEO of the Company,
the acquisition provides an opportunity to align the interests of
the Hornby and the Oxford Diecast businesses. The proposed
acquisition is subject to approval by the Company's shareholders
and completion of the equity fundraising. Further details in
relation to the proposed acquisition will be announced this
morning.
Equity Fundraise
We have approached investors in relation to the proposed equity
fundraising of GBP12.0 million (before expenses), to be undertaken
by way of a placing and open offer, in order to provide the
necessary funding to support the new strategy, fund the acquisition
consideration and to further strengthen the Company's balance
sheet. We have also entered into an agreement with Barclays Bank
PLC ("Barclays"), the Group's bankers, to amend the existing
revolving credit facility (subject to the completion of the
proposed equity fundraising) and to bring the financial covenants
in line with management's expected financial performance.
Further details in relation to the proposed equity fundraising
and the amendments to the credit facility will be announced this
morning. The equity fundraising is being supported by funds managed
by Phoenix Asset Management Partners Limited. The proposed equity
fundraising is subject to approval by the Company's
shareholders.
Performance
Revenue for the six months was GBP17.0 million (2016: GBP21.9
million), a decrease of 22 per cent. compared with the previous
year. The loss before taxation and exceptional items was GBP4.6
million (2016: GBP3.3 million).
Net debt for the Group as at 30 September 2017 was GBP4.7
million (2016: GBP2.1 million). The drawdown amount on the GBP7.75
million UK revolving credit facility as at 30 September 2017
amounted to GBP7.4 million (2016: GBP5.5 million).
At this stage in the Group's development the Board believes it
is not appropriate to recommence paying dividends. No dividend was
paid for the same period last year.
Detail of the New Strategy
Reinvigorate and grow key brands and products
The focus on tight cost control has caused the Group to reduce
its expenditure on product development across its key brands. The
Group intends to utilise approximately GBP1.0 million of the
proceeds from the proposed equity fundraising to invest in
additional capital expenditure over and above the existing level to
improve the product offering for its key brands.
In addition, the Group's population of enthusiasts for many of
its key brands is ageing. As a result, the Company plans to develop
products which are targeted at younger-aged groups to attract a new
generation of consumers.
Grow our European brands
The Group owns a number of market leading brands in the European
model trains market. However, these brands have suffered from
underinvestment as management's time was focused on cost control to
improve cash generation. As a result, the Board believes that there
is a significant opportunity to drive revenue growth across the
Group's European markets by improving the product offering in line
with each brand's core values, and through improving the engagement
with consumers in these markets.
Maintain appropriate product pricing
As part of the previous turnaround plan, the Group focussed on
discounting and promotions in order to drive revenue growth and
cash generation. The use of discounting has led to an expectation
by retailers that they do not need to acquire new products upon
their release as they would shortly be discounted, thereby
undermining the value of those product lines and ultimately the
brand. This has also had an impact on the Company's relationship
with retailers who have acquired stock from Hornby at full price,
only to have to write the value of that stock down once discounts
are made available.
As announced on 17 October 2017, in order to maximise the value
of its brands over the longer term, the Group will no longer offer
large quantities of stock at a discount. However, in the short
term, this is likely to lead to a reduction in revenue whilst the
market adjusts to the Group's new pricing strategy. This reduction
in revenue will reduce the Group's cashflows and create a short
term working capital requirement, resulting in the need to further
strengthen the balance sheet as outlined above.
Streamline the Group's systems and processes
Utilising the industry experience of the new operational
management team, several opportunities have been identified to
restructure the Group's systems and processes, which should lead to
management and cost efficiencies and ultimately further reduce the
fixed cost base of the Group.
Outlook and current trading
The current financial year represents a period of change for the
Group as the management team looks to reshape the business in line
with the new strategy; this will result in full year revenue
reducing significantly year on year. At the half year, Group
revenue was 22 per cent. lower than the previous year and while
this performance reflects the timing of new product releases being
more weighted to the second half of this year, it also reflects
softer market demand over the summer months and increased
competition in the important UK Independent channel.
Revenue for the six weeks to 12 November 2017 was 10 per cent.
lower than the previous year. The previous year's figures included
the effect of significant discounting and promotional activity.
Overall, we remain confident that the changes now being implemented
are the correct course of action to protect the value of our brands
and build a stronger platform for the future growth of the Company
for the benefit of all stakeholders.
Financial review
Performance
Group revenue for the six months to September 2017 of GBP17.0
million was 22 per cent. lower than the previous year (2016:
GBP21.9 million), for the factors outlined above. The gross margin
for the period was 36 per cent. (2016: 36 per cent.), which was
consistent with the previous year but is below that expected for
the full year as it reflected the product mix being weighted more
towards revenue from National retailers, which carry a lower margin
than new product sales to our Independent customers.
Underlying overheads (excluding other operating expenses) of
GBP10.1 million reduced year-on-year by 16 per cent. showing the
benefit of the structural changes undertaken over the course of the
last financial year. Other operating expenses were GBP0.5m (2016:
GBP0.9m income), which includes foreign exchange losses on trading
transactions in the period totalling GBP0.5 million compared with
gains of GBP0.6 million in the previous year.
The operating loss before exceptional costs for the six months
to September 2016 was GBP4.5 million, compared with a loss of
GBP3.2 million for the same period last year. This was largely due
to the year on year decrease in revenue and consequent gross margin
noted above and the impact of foreign exchange losses, offset by
overhead savings.
Exceptional costs during the first half year were GBP1.1 million
(2016: GBP1.4 million) and these included the costs relating to the
unsuccessful attempt to change the Board composition through a
requisitioned General Meeting and the mandatory offer to buy the
Company both of which required professional advice including a
circular to shareholders and a shareholder meeting. The exceptional
costs also include the costs of senior management changes and the
further costs of restructuring the business.
Group loss before tax was GBP5.7 million (2016: loss of GBP4.7
million) and was caused by all of the factors identified above. The
basic loss per share was 6.76p (2016: loss per share of 6.89p).
Segmental analysis
Third party revenue for the UK business reduced by 18 per cent.
in the period to GBP13.7 million and generated an underlying loss
before taxation of GBP3.9 million compared to a loss of GBP2.8
million last year. Revenue for the first half of 2017 has reduced
significantly compared with the same period last year due to the
timing of new product releases during the period. The International
businesses' revenue fell by a third in the period to GBP3.3 million
and generated an underlying loss of GBP0.7 million (2015: GBP0.8m
loss). Trading was constrained by some challenges with the supply
of international model rail during the first half, which have been
delayed until later in this financial year.
Balance sheet
Group inventories reduced year on year by 20 per cent. to
GBP12.0 million (2016: GBP9.7 million) due to its careful
management and by addressing historic stock issues. Trade and other
receivables were GBP9.3 million (2016: GBP11.9 million), the fall
was in line with the overall reduction in revenue. Trade and other
payables were GBP7.6 million (2016: GBP8.4 million) reflecting the
lower level of activity in the business in the first half of this
financial year. The net effect of these factors was a year on year
reduction in working capital requirements of GBP4.8 million to
GBP13.7 million. Investment in new tooling, new computer software
and other capital expenditure was GBP0.8 million (2016: GBP1.0
million) reflecting the streamlining of the product range resulting
in lower levels of capital expenditure this year.
Capital structure and banking facilities
The funds raised in 2016 have been utilised by the cost of
reorganising and streamlining the business and by the disappointing
level of losses sustained during the first half of this financial
year.
There was an increase in net debt at 30 September 2017 to GBP4.7
million, from GBP1.5 million net cash at 31 March 2017.
As at 30 September 2017 the Group had in place a revolving
credit facility of GBP7.75 million with Barclays, expiring December
2019.
The Company's existing banking facility will still mature on 31
December 2019, but following agreement with Barclays, will be
reduced to GBP6.0 million on completion of the proposed equity
fundraising, with a further step-down of the facility on 1 July
2018 to GBP5.0 million. This is expected to allow sufficient
headroom for the Group's trading working capital and capital
expenditure needs through to the end of 2019. The facility will
have a margin of 3.75 per cent. over LIBOR and is subject to
commitment and utilisation fees dependent on the level of drawings
under the facility.
The amended financial covenants, which the Group must comply
with, are to be tested quarterly. For the duration of the
transition period of the Group's new strategy through to March
2019, such financial covenants shall comprise a minimum EBITDA
test. Thereafter, the financial covenants shall revert to customary
leverage and interest cover financial covenants.
Going concern
The Group today announced that it is proposing to undertake an
equity fundraising of GBP12.0 million (before expenses) to enable
management to pursue the Group's new strategy, to fund the
acquisition and to further strengthen the balance sheet.
The Directors have already approached both existing and
potential new investors to raise the equity funding of GBP12.0
million and, following discussions with the Company's largest
shareholder, the directors have a high degree of confidence that
the fundraising will be approved by shareholders and therefore
provide new working capital.
The Group has prepared cash flow forecasts on the basis of the
additional equity fundraising and after detailed review of these
forecasts and cash flow models, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. For these
reasons, they continue to adopt the going concern basis of
accounting in preparing the annual financial statements.
Although the proposed placing and open offer has not yet been
formally approved by shareholders, it is being supported by funds
managed by Phoenix Asset Management Partners Limited. The Board
therefore has a high degree of confidence over the Group's ability
to continue as a going concern.
STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 September 2017
All of the activities of the Group are continuing. The notes on
pages 11 to 19 form an integral part of this condensed consolidated
half-yearly financial information.
BALANCE SHEET
As at 30 September 2017
The notes on pages 11 to 19 form an integral part of this
condensed consolidated half-yearly financial information.
STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2017
The notes on pages 11 to 19 form an integral part of this
condensed consolidated half-yearly financial information.
STATEMENT OF CASH FLOWS
for the six months ended 30 September 2017
The notes on pages 11 to 19 form an integral part of this
condensed consolidated half-yearly financial information.
NOTE TO THE CASH FLOW STATEMENT
for the six months ended 30 September 2017
Cash flows from operating activities
NOTES TO CONDENSED CONSOLIDATED HALF-YEARLY FINANCIAL REPORT
1. GENERAL INFORMATION
The Company is a public limited liability company incorporated
and domiciled in the UK. The address of the registered office is
3rd Floor, The Gateway, Innovation Way, Discovery Park, Sandwich,
Kent, CT13 9FF. The Group is principally engaged in the
development, design, sourcing and distribution of hobby and
interactive home entertainment products.
The Company has its primary listing on the Alternative
Investment Market and is registered in England No. 01547390.
This condensed consolidated half-yearly financial information
was approved for issue on 17 November 2017.
This condensed consolidated half-yearly financial information
does not comprise statutory accounts within the meaning of Section
434 of the Companies Act 2006. Statutory accounts for the year
ended 31 March 2017 were approved by the Board of Directors on 21
June 2017 and delivered to the Registrar of Companies. The Report
of the Auditors on those accounts was unqualified and did not
contain any statement under Section 498 of the Companies Act
2006.
Forward Looking Statements
Certain statements in this half-yearly report are
forward-looking. Although the Group believes that the expectations
reflected in these forward-looking statements are reasonable, we
can give no assurance that these expectations will prove to be
correct. Because these statements involve risks and uncertainties,
actual results may differ materially from those expressed or
implied by these forward-looking statements.
We undertake no obligation to update any forward-looking
statements whether as a result of new information, future events or
otherwise.
2. BASIS OF PREPARATION
This condensed consolidated half-yearly financial information
for the half-year ended 30 September 2017 has been prepared in
accordance with IAS 34 'Interim Financial Reporting' as adopted by
the European Union. The half-yearly condensed consolidated
financial report should be read in conjunction with the annual
financial statements for the year ended 31 March 2017 which have
been prepared in accordance with IFRSs as adopted by the European
Union.
3. ACCOUNTING POLICIES
The accounting policies adopted are consistent with those of the
annual financial statements for the year ended 31 March 2017, as
described in those annual financial statements with the exception
of tax which is accrued using the tax rate that would be applicable
to expected total annual earnings.
Adoption of new and revised standards
There are no standards, amendments to standards or
interpretations that are both mandatory for the first time for the
financial year ending 31 March 2017 and that have a material impact
on the Group's results, except for IFRS 16 outlined below.
IFRS 16 will replace the current guidance under IAS 17 and will
have a significant impact on the accounting by lessees in
particular. Under IAS 17, lessees were required to make a
distinction between a finance lease (on balance sheet) and an
operating lease (off balance sheet). IFRS 16 will require lessees
to recognise a lease liability reflecting future lease payments and
a 'right-of-use asset' for virtually all lease contracts. The
adoption of IFRS 16 will have a material effect on the Hornby PLC
financial statements by grossing up assets and liabilities by
approximately GBP1.0 million.
Estimates
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing this condensed consolidated half-yearly financial
report, the significant judgements made by management in applying
the Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements for the year ended 31 March 2017.
Financial instruments
The Group's activities expose it to a variety of financial
risks: market risk (including currency risk, cash flow interest
rate risk and price risk), credit risk and liquidity risk.
The condensed consolidated half-yearly financial report does not
include all financial risk management information and disclosures
required in the annual financial statements, and should be read in
conjunction with the Group's annual financial statements as at 31
March 2017.
There have been no changes in the risk management policies since
year end.
The Group's financial instruments, measured at fair value, are
all classed as level 2 in the fair value hierarchy, which is
unchanged from 31 March 2017. Further details of the Group's
financial instruments are set out within note 8 of this half-yearly
report as required by IFRS 13.
4. SEGMENT INFORMATION AND EXCEPTIONAL ITEMS
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the Board of the Company that
makes strategic decisions.
Operating profit of each reporting segment includes revenue and
expenses directly attributable to or able to be allocated on a
reasonable basis. Segment assets and liabilities are those
operating assets and liabilities directly attributable to or that
can be allocated on a reasonable basis.
Management has determined the operating segments based on the
reports reviewed by the Board (chief operating decision-maker) that
are used to make strategic decisions.
The Board considers the business from a geographic perspective.
Geographically, management considers the performance in the UK,
USA, Spain, Italy and rest of Europe. Although the US segment does
not meet the quantitative thresholds required by IFRS 8, management
has concluded that this segment should be reported, as it is
closely monitored by the chief operating decision-maker.
5. TANGIBLE AND INTANGIBLE ASSETS AND GOODWILL
The additions comprise new product tooling (GBP705,000),
property, plant and equipment (GBP20,000) and
intangible assets - computer software (GBP99,000).
The Group has again performed impairment reviews
as at 30 September 2017 and consider the carrying
value of the assets held to be recoverable.
The discount rates and key assumptions used
within the updated models at 30 September 2017
have remained constant with the impairment reviews
conducted in March 2017.
Tangible and intangible assets Six Six
and goodwill (unaudited) months months
ended ended
30 September 30 September
2017 2016
GBP'000 GBP'000
Opening net book amount 1 April
2017 and 1 April 2016 14,451 16,485
Exchange adjustment 10 279
Additions 825 985
Disposals - (51)
Depreciation, amortisation and
impairment (1,767) (2,053)
--------------- -----------------
Closing net book amount 30 September
2017 and 30 September 2016 13,519 15,645
=============== =================
2017 2016
CAPITAL COMMITMENTS (unaudited) (unaudited)
GBP'000 GBP'000
At 30 September commitments were:
Contracted for but not provided
for 420 549
=============== ===============
The commitments relate to the acquisition of tooling as part of
property, plant and equipment.
6. SHARE CAPITAL
At 31 March 2017 and 30 September 2017, the Group had 84,583,204
ordinary 1p shares in issue with nominal value GBP845,832 (2016 -
GBP549,535).
The following employee share options were exercised during the
first half to 30 September 2017 (2016 - GBPnil).
Number Number of shares Cash settlement amount
of Employees in relation to which determined by reference
the LTIP award vested to 32.375 pence per
share (plus National
Insurance)
4 352,508 GBP136,430
7. BORROWINGS
At 30 September 2017 the UK had a GBP7,750,000 revolving credit
facility expiring December 2019 (2016 - GBP10,000,000) that
attracts interest at 3.5 per cent above Libor. (2016 - 3.5 per cent
above LIBOR).
In the period to 30 September 2017 loan repayments were GBPnil
(2016 - GBP167,000).
The drawdown amount on the revolving credit facility amounted to
GBP7,400,000 (2016 - GBP5,500,000) and is included within net bank
overdrafts above.
8. FINANCIAL INSTRUMENTS
The following tables present the Group's assets and liabilities
that are measured at fair value at 30 September 2017 and 31 March
2017. The table analyses financial instruments carried at fair
value, by valuation method. The different levels have been defined
as follows:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
- Inputs other than quoted prices included within level 1 that
are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level
2).
- Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (Level
3).
There were no transfers or reclassifications between levels
within the period. Level 2 hedging derivatives comprise forward
foreign exchange contracts and an interest rate swap and have been
fair valued using forward exchange rates that are quoted in an
active market. The fair value of the following financial assets and
liabilities approximate their carrying amount: Trade and other
receivables, other current financial assets, cash and cash
equivalents, trade and other payables and bank overdrafts and
borrowings.
Fair values are determined by a process involving discussions
between the Group finance team and the Audit Committee which occur
at least once every 6 months in line with the Group's reporting
dates.
9. TAXATION
The tax expense is recognised based on management's latest
estimate of the estimated full year forecast effective tax rate
determined for each territory. Due to the expected incidence of
profits in the second half of the year in each entity, the rate for
the full year is expected to be in line with the interim rate.
10. (LOSS)/EARNINGS PER SHARE
(Loss)/earnings per share attributable to equity holders of the
Company arises from continuing operations as follows:
30 September 30 September 31 March
2017 (unaudited) 2016 (unaudited)
2017
(audited)
(Loss)/earnings per share
from continuing operations
attributable to the equity
of the Company
- basic (6.76)p (6.89)p (12.65)p
- diluted (6.76)p (6.89)p (12.65)p
======= ======= =======
11. DIVIDENDS
No interim dividend has been declared for the interim period
ended 30 September 2017 (2016 - GBPnil).
12. CONTINGENT LIABILITIES
The Company and its subsidiary undertakings are, from time to
time, parties to legal proceedings and claims, which arise in the
ordinary course of business. The directors do not anticipate that
the outcome of these proceedings and claims, either individually or
in aggregate, will have a material adverse effect upon the Group's
financial position.
13. RELATED-PARTY TRANSACTIONS
Key management compensation amounted to GBP1,296,000 for the six
months to 30 September 2017 (2016 - GBP1,266,000). Key management
include directors and senior management. For the period to 30
September 2017 there was an underlying decrease compared to the
same period last year because of the changes and restructuring of
the UK business.
Before appointment as Managing Director of Asia and a director
of Hornby Hobbies Limited, a subsidiary of Hornby PLC, Bharat Ahir
provided consultancy services to the Group. 28One Limited, not to
be confused with companies of a similar name, which is owned by
Bharat continues to support the business in relation to providing
ongoing support to manage product delivery and Hornby Hobbies has
paid GBP89,330 (2016 - GBP99,798) in relation to these services to
28One Limited since 1 April 2017. No outstanding payments remained
payable to 28One Limited as at 30 September 2017 (2016 - nil).
Hornby Hobbies Limited continues to use these services on an
ongoing basis.
There are no other related-party transactions during the
period.
Subsequent to the period end a significant related party
transaction is announced today as detailed in Note 16 below.
14. RISKS AND UNCERTAINTIES
The Board has reviewed the principal risks and uncertainties and
have concluded that the key risks continue to be UK market
dependence, market conditions, exchange rates, supply chain,
product compliance and liquidity. The disclosures on pages 17 and
18 of the Group's Annual report for the year ended 31 March 2017
provide a description of each risk along with the associated impact
and mitigating actions. The issues surrounding supply chain,
liquidity, and market conditions are covered in more detail within
the interim management report itself. The Board will continue to
focus on risk mitigation plans to address these areas.
15. SEASONALITY
Sales are subject to seasonal fluctuations, with peak demand in
the October - December quarter. For the six months ended 30
September 2017 sales represented 36 per cent of the annual sales
for the year ended 31 March 2017 (2016 - 39 per cent of the annual
sales for the year ended 31 March 2016).
16. SUBSEQUENT EVENTS
Lyndon Davies was appointed as CEO on 3 October 2017 replacing
Steve Cooke.
In addition to the appointment of Mr Davies, the Group plans to
acquire 49 per cent. of the share capital of LCD, the holding
company of Oxford Diecast Limited, which is owned by Mr Davies. The
acquisition is subject to shareholder approval.
The Group is proposing to undertake an equity fundraising of
GBP12.0 million, by way of a placing and open offer, to support
delivery of the Group's strategic objectives, to fund the
acquisition of shares in LCD and to provide additional working
capital. The placing and open offer is subject to shareholder
approval.
By order of the Board
Lyndon Davies David Mulligan
Chief Executive Group Finance Director
17 November 2017
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END
IR BDBDBDSBBGRR
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