Good morning, it's Paul here, with Monday's SCVR.

Please see the header for company announcements that have caught my eye today.

Estimated timings - the bulk of today's report is now done. I'm taking a break for lunch now, and might come back with a little more later. Today's report is now finished.


Ted Baker (LON:TED)

Share price: 139p (down 10% at 09:25)
No. shares: 44.6m + 126.7m = 171.3m
Market cap: £238.1m

Final Results

Ted Baker, the global British Lifestyle brand, today announces its full year results for the year ended 25 January 2020, as well as providing: an update on actions taken to strengthen the business; a transformational strategy "Ted's Growth Formula", to return the Company to profitable growth; a summary of its response to Covid-19 and an update on current trading.

There's a big placing announced today too, which I'll cover separately below.

Results are pre-covid, so not terribly relevant. The figures look bad, with profitability having collapsed: underlying profit before tax fell from £63.0m last year to only £4.8m this year. Moreover, that doesn't include the inventories write-off (they were carrying stock at inflated valuations before). Reported profit before tax looks awful, at a loss of £(79.9)m.

Look at the scale of the adjustments to profit - this is really stretching credibility;

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Balance sheet - there doesn't seem to be one, in the results announcement. It just stops after the financial review. So I'm not sure what's going on here.

Property disposal - highly material, with net proceeds of "at least £72m" in the pipeline, completion expected in Jun 2020. This will be used to repay debt.

Proposed placing - key points;

  • Deep discount - new shares are being issued at just 75p, a 51% discount!
  • Heavy dilution - share count rising from 44.6m shares, to 171.3m shares
  • Underwritten - hence high fees at £5m, so £95m gross becomes £90m net
  • Open offer of an additional £10m for existing holders, 4 new shares for every 7 existing shares
  • Bank facilities increased slightly, but will reduce when HQ building is sold shortly
  • Joint bookrunners: Goldman Sachs & Liberum

My opinion - I'm not going to plough through all the restructuring narrative, because turnarounds rarely work in this sector.

As reported previously here, this company is in a complete mess, and I see…

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