REG - Pittards PLC - Financial position update & suspension of trading

PittardsAnnouncement

29/06/2023 10:00

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RNS Number : 3797E  Pittards PLC  29 June 2023

 

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

 

29 June 2023

PITTARDS PLC

("Pittards", "Company" or "the Group")

 

 Update re financial position

Timing of final results

Suspension of trading

 

Pittards plc (AIM : PTD), the specialist producer of technically advanced
leather and luxury leather goods for retailers, manufacturers and
distributors, provides an update to its financial position and the timing of
the publication of its audited results for the year ended 31 December 2022.

 

Update re Financial Position

 

On 24 March 2023, the Company announced a fundraise, that was approved by
shareholders at a general meeting held on 11 April 2023, to enable the Company
to manage its working capital until at least the end of May 2023, during which
time it expected to agree new bank facilities with either Lloyds Bank (its
existing lender) or an alternative provider. In addition, it was indicated
that, depending on the size and structure of the new facilities further equity
and/or debt may also be required to provide some funding for growth and fully
return the Company's creditors to a normal profile. The Directors estimated
that this additional requirement could have been up to £3 million.

 

The Company is pleased to report that it has agreed indicative terms for the
restructuring of its existing debt facilities for its UK business with Lloyds
Bank, for approximately £10.1 million. The principal change being the
restructuring of the Company's existing overdraft facilities into a two year
term loan of £7.7 million with the other facilities remaining largely
unchanged. The proposed new debt facilities are conditional, inter alia, on
the Company completing an equity fundraise of £1.5 million.

 

Plans for the equity raise are underway and include discussions with a
cornerstone trade investor. Shareholders should note there can be no certainty
of the outcome of these discussions. Accordingly, in light of the Company's
reducing cash position, should the Company be unable to complete the £1.5
million fundraising, the prospects for recovery of value, if any, by
shareholders would be uncertain.

 

In order to facilitate the conclusion of an equity raise Lloyds Bank has
agreed to extend the Company's existing banking facilities until 31 July 2023.
In the meantime Company continues to operate at or around the ceiling of its
bank facilities.

 

Further announcements will be made as and when appropriate.

 

Timing of Final Results/ Suspension of Trading

 

The audit of the Company's accounts for the year ended 31 December 2022 will
not be completed by 30 June 2023 as required under AIM Rule 19 of the AIM
Rules for Companies. As a result, the Company's shares will be suspended with
effect from 7.30 a.m. on 3 July 2023 until such time as the audited results
are published and sent to its shareholders. It is currently anticipated that
the results will be published in the week commencing 10 July 2023.

 

 

For further information, please contact:

 Pittards plc            www.pittards.com
                         (https://url.avanan.click/v2/___https:/urldefense.proofpoint.com/v2/url?u=http-3A__www.pittards.com&d=DwMFAw&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=7Um2a7LLyUH5SxHgl6zdagatUzGQxXwYgU_CeVAgL9Q&m=dcxSX44rdBUfn6sOWMPfQnBnCJtou4u4IKqv6fz9X7A&s=rFM_1ZGKBHfxhkHpVSXLSt0x8mI_pHwBTYmsp
                         -PFAYY&e=___.YXAxZTp3aGlyZWxhbmRwbGMyOmE6bzo0Y2UwZTIwNGM5YWVlMmJlOTIzMmFjMmE5ZjllMWU2OTo1OjRmZjI6YmY3ZjYxYThjZWYwZGIzMjMyZTFiNDQxNDgxODU3YmU2N2M1YTA2NzRkMDlhN2YxY2U3YWI0M2FmOWJlMWVmNDpoOk4)
 Stephen Yapp, Chairman  +44 (0) 1935 474 321

 Reg Hankey, CEO

 Alan Burgess, CFO
 WH Ireland Limited      www.whirelandcm.com (http://www.whirelandcm.com)
 Mike Coe, Sarah Mather  +44 (0)20 7220 1666

 

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