Corporate update on Subsidiary Insolvency
11/04/2023 07:00
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RNS Number : 7128V S-Ventures PLC 11 April 2023
11 April 2023
S-VENTURES PLC
("S-Ventures" or the "Company")
Corporate update
S-Ventures plc (AQSE: SVEN) (OTCQB: SVTPF), the company growing exciting
brands across the natural, wellness and food-tech categories announces that on
31 March 2023, the Board determined that it was no longer commercially viable
to continue supporting Lizza, a-100% subsidiary of S-Ventures. Accordingly,
the Board has filed for insolvency of Lizza in the German court this week.
Lizza was acquired by S-Ventures in September 2022 for €1. Lizza was already
a loss-making company at the time of acquisition.
For the 5-month period ended 28 February 2023, Lizza made a net loss of
c.€1.00 million on a turnover of c.€0.60 million, representing c.6% of the
Group's consolidated revenue during the same period.
A mix of issues has affected its business and financial performance acutely,
including increasing ingredient costs, labour costs and a lack of consumer
demand which have led to a significant drop in sales and a huge upsurge has
arisen in costs that was unforeseen. The losses are unsustainable, and the
brand and costs associated with production and distribution are not
commercially viable. We and the team at Lizza have exerted every effort to
turn around the business. However, due to the losses and tough business
environment, the Board decided that it had no alternative but to seek
liquidation.
The Board is of the view that the liquidation of Lizza will not significantly
impact the other businesses within S-Ventures. However, the Group intends to
find alternatives for European distribution which has become ever more complex
but is still a very small amount of the Group's business (c.2%).
As a result of this liquidation, the Group will incur a write-off of
approximately €1.00 million from the loans owed to it from Lizza.
For further information, please contact:
The Company +44 (0) 1932 400 224
Robert Hewitt (Chief Financial Officer)
Scott Livingston (Chief Executive Officer)
AQSE Corporate Adviser and Broker: +44 (0) 20 3005 5000
VSA Capital Limited
Andrew Raca
Evon Chan
Matthew Harker
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