Ashley (Laura) Hldgs PLC FINANCING AND TRADING UPDATE (1883G)

TIDMALY

RNS Number : 1883G

Ashley (Laura) Hldgs PLC

16 March 2020

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 596/2014 ("MAR").

13 March 2020

For immediate release

LAURA ASHLEY HOLDINGS PLC

(the "Company" and together with its subsidiaries, the "Group")

FINANCING AND TRADING UPDATE

Current trading

During the six weeks to 7 March 2020, total sales were 27.7% ahead of the equivalent period in 2019 and gross profit was 22.2% up on the equivalent period, ahead of management expectations. Whilst the Company has not yet seen a significant financial impact due to COVID-19, the Company believes that it has the potential to negatively influence future trading as a result of reduced footfall and continues to monitor the situation closely.

Financing update

Further to the announcements of 19 February 2020 and 20 February 2020, the Company has continued to review its funding requirements. As explained in the recent Interim Results, there has been a reduction in the amount that the Group can draw down under its debt facility with the incumbent lender to the Group.

In addition to the GBP5.0 million already drawn down under this facility, as part of the Company's ongoing review, it has determined that the Group will need further funding to meet its ongoing working capital requirements.

The Company continues to engage proactively with its key stakeholders, particularly MUI Asia Limited and the trustees of the Laura Ashley retirement benefits scheme. MUI Asia Limited has confirmed that it is continuing to actively consider the provision of an additional GBP10 million facility to further support the Company's proposed turnaround plan.

The Company is in advanced discussions with a third-party lender to provide facilities of up to an additional GBP15 million to meet the Group's working capital requirements. This process is being managed by Arrowpoint Advisory and the debt funding will need to be in place by no later than the end of March 2020.

If the Group is unable to secure commitment for the requisite level of funding by the end of March to satisfy its ongoing working capital requirements and turnaround plan, then the Company will need to consider all appropriate options.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Sagar Mavani, Chief Financial Officer.

Enquiries:

 
 Katharine Poulter / Sagar 
  Mavani                        Laura Ashley          020 7880 5100 
 Anita Scott / Alice Gibb       Brunswick             020 7404 5959 
 Rick Thompson / Michael        Cantor Fitzgerald 
  Boot                           Europe               020 7894 7000 
 

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March 16, 2020 03:00 ET (07:00 GMT)