Land Of Leather Share Discussion Threads

[clocktower] 19/6/2008 10:53

Nobody likes to see businesses and staff suffer but the likes of this has been seen before only to end in further suffering as trade tends to decline further as buyers steer clear in fear of lost deposits etc etc - not everyone wants to use their credit cards to place deposits to ensure they do not suffer further losses. The only hope is "IF" these new funds run out, and the business has been cleaned and polished then you might get a management buyout at a much later date - and for a pittence imo.

[chesty1] 19/6/2008 10:30

6.37p against 6.28p....

Someone IMHO wants this stock, lets see what happens after the dust settles and the panic sellers are out.

Yes the shorters have it correct & I am more than big enough to admit that & a very well done, but this one is far from over.

[zipper] 19/6/2008 10:22

clocktower - 16 Jun'08 - 13:05 - 925 of 990


Come what may, I cannot see there being any big payoff CHESTY1 for anyone buying at these levels. At best the dilution will destroy any value remaining short term and is very unlikely to allow this to continue long enough for the cycle to alter imo.
++++++++++++++++++++++++

you called it right clocktower, can see these ending up like World of Leather. Remember the queues outside 'World of Leather' in London - people trying to reclaim their deposits after it went into receivership!

[the big fella] 19/6/2008 10:11

Chesty

In this day an age that is a bit like playing a football match with half a team.

[trojan] 19/6/2008 09:59

At least we now know what the new company will be called in 12 months time:

" Land Of Leather and Fabric" ;)

[chesty1] 19/6/2008 09:58

Well done M.T Glass..

My main problem in the market place is I dont short...Which in this day n age is wrong.

Long n happy on MNA &long n unhappy in LAN (at the mo).

Be lucky to all & well done those who are making money out of this one. With LAN showing no debt surely its a takeover target. There's a lot worse co's out there on the stock market.

[m.t.glass] 19/6/2008 09:26

me too
My most profitable stock of the year so far.

[the big fella] 19/6/2008 09:15

Indeed but the easy money has been made so I have closed my shorts in both Land of Leather and SCS.

[typo56] 19/6/2008 09:08

Judgement, it's 5p per share in today's money.

Any fool can get the share price up with a consolidation!

[judgement] 19/6/2008 08:59

This is a management team team that can get the share price up, and deliver on promises. They said £10m at year end, and on top of that it looks like they're going to manage 50p per share.

[bsg] 19/6/2008 08:42

No debt, is good though.

[deanroberthunt] 19/6/2008 08:37

just so there's no doubt, I have no position, just my advice;

this is as nailed on bust as they come....give your money to charity if you don't want it...

[wcjan26] 19/6/2008 08:35

this is such a hopeless case (-35% comparables!), you have to wonder why an underwriter would touch it for £1.5m fees

makes you wonder if gordon brown has stumped up the money to avoid the headlines of lots of punters who bought sofas losing their money

[chesty1] 19/6/2008 08:19

well thats me in for some at 6.25p....

Lets see what happens from here.

well done shorters......Do you load up or bail out for now. who knows.

[typo56] 19/6/2008 08:16

Shorters will hope the price stays down until the open offer is out of the way, otherwise won't they have a tab to pickup for the open offer stock?

The buy order that's been hanging around for week of 20k @ 6p seems to have been pitched about right.

[siwel100] 19/6/2008 08:10

There will be loads of stock floating to close all the short positions, the RNS removes any hope of a short close bounce. No trading opportunities just one for the morbidly curious.

[still waiting] 19/6/2008 08:04

yep, they'll have to buy the display stock for each store, wasting more cash on stock that will not shift!!!

how they got this away I'll never know, is it underwritten?

[m.t.glass] 19/6/2008 07:58

"..£14.8 million, which should provide the necessary working capital to trade through the current difficult retail environment..."


errrm... doesn't that rather depend on how long the difficult environment is?
Would they care to put a time limit on how long that money will tide them over for?


And instead of being able to find a new tenant to take up the remainder of the space left vacant by Sleep Depot, they are going to fill that space with.... (wait for it!)... even more sofas!

[still waiting] 19/6/2008 07:57

sub 5p will come in due time.

Still doesn't erode the fact the market has collapsed by 35% now.

Even that cash won't last long.

[warrenc] 19/6/2008 07:56

These guys have just bought short term survival !!!

[typo56] 19/6/2008 07:54

"The high operational gearing of the Group should enable it to significantly increase profitability when sales recover to historic levels"

And if they don't recover to historic levels?

[warrenc] 19/6/2008 07:51

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS IN THAT JURISDICTION
19 June 2008
LAND OF LEATHER HOLDINGS PLC

('Land of Leather' or the 'Company')
Proposed Placing and Open Offer to raise £15 million
1 for 10 Consolidation of existing Ordinary Shares
The Board today announces that it proposes, subject to approval by Shareholders, to raise approximately £13.5 million (net of expenses) by way of the issue of 29,945,226 New Ordinary Shares. The issue is being made by way of a Placing and Open Offer to Qualifying Shareholders. The Board is proposing this course of action as additional funds are required to strengthen the Company's balance sheet and working capital position.
Highlights
The Company has successfully secured, subject to Shareholder approval, a financing package to provide additional working capital appropriate for the challenging market conditions which the Directors believe are likely to continue well into 2009.
Despite extremely difficult market conditions, forecast profit before tax and exceptional items is not less than £2 million for the year ended 3 August 2008.
At 25 May 2008, the Company had no debt and cash balances of £5.2 million.
The expected cash balances for July 2008, post receipt of the additional equity funds, are circa £14.8 million, which should provide the necessary working capital to trade through the current difficult retail environment.
Management are focused on reducing operating costs and conserving cash, in line with lower activity levels, in order to minimise the cash burn of the business.
The Company has received expressions of support from two existing key trade insurers.
The Company intends to utilise concession space released by The Sleep Depot and not taken up by the Homestyle Group to display a new range of fabric sofas. The Group will remain focussed on its leather offering, which will not be reduced by this new line.
The trading results in the six weeks ending 6 June 2008 show a like for like sales decline of 35 per cent.. The Company anticipates like for like sales for the remainder of the financial year to be particularly difficult in light of strong comparatives from the previous year.


• The Issue is being made by way of a Placing and Open Offer of 29,945,226 New Ordinary Shares to Qualifying Shareholders at an Issue Price of 50 pence per New Ordinary Share (equivalent to 5 pence per Ordinary Share pre-Consolidation) to raise approximately £15 million gross of expenses. In the absence of the Issue completing the Company is unlikely to be able to continue to trade in its current form.

A 1 for 10 share consolidation is being proposed so that for every 10 existing Ordinary Shares of 1 penny each, a Shareholder will hold one Ordinary Share of 10 pence each. The Placing and Open Offer will take place on a post consolidation basis.
Directors and their associated persons have committed to take up to 5,976,715 New Ordinary Shares under the Issue equivalent to £3.0 million.
Barclays Bank plc, the Group's credit and debit card clearing bank, has agreed to continue to provide its existing credit and debit card clearing facilities to the Group following Admission for a minimum period of 12 months, in consideration for which the Group has agreed to provide some cash collateral over the period of the agreement.
The Issue and the Share Consolidation are subject to Shareholders' approval at an Extraordinary General Meeting ('EGM').
Investec is acting as sponsor, joint broker, and joint underwriter to the Company. Kaupthing is acting as joint broker and joint underwriter.
A circular will shortly be posted to Shareholders comprising a prospectus containing details of the Placing and Open Offer and notice of an EGM of the Company (the 'Circular').
Once published, copies of the Circular will be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at:
The Financial Services Authority

25 The North Colonnade

Canary Wharf

London E14 5HS
Roger Matthews, Chairman of Land of Leather Holdings PLC, commented:
'This fundraising package will support our continued trading through the toughest environment for furniture retailing and other big ticket retailers for many years. Whilst our value orientated business model and product focus gives Land of Leather a number of important competitive advantages, we have taken a very cautious view of the outlook for our sales throughout 2009.
We have also reviewed all elements of our business and have been quick to make a series of significant cost and capital expenditure reductions to conserve cash. We will continue to seek to reduce operating costs in line with activity levels.
Whilst the short term outlook for the market is very challenging, longer term prospects are positive as key market drivers improve. The high operational gearing of the Group should enable it to significantly increase profitability when sales recover to historic levels.
As a result of the new financing package, the Board believes the Company should be able to trade through this very difficult period and exploit its strong market position into the longer term.'

- ends -
For further information please contact:

Land of Leather Holdings plc

Clive Hatchard 0147 432 2277

Investec

James Grace / Patrick Robb 0207 597 5180

Kaupthing

Nicholas How / Paul Wedge 0203 205 5000

Hudson Sandler

James White / Andrew Hayes 0207 796 4133

[m.t.glass] 19/6/2008 07:02

From a Texas tourist

".Finally we come upon Yoakum. They kept their sign short and sweet: Land of Leather. There are a bunch of cattle farms around there. They even have a complete cattle topiary scene downtown.."


D'ya think the towsfolk might have a whipround to save LAN?

[m.t.glass] 19/6/2008 06:53

Sofa retailers ScS Upholstery and Land of Leather both crumbled on fears that they will only be able to raise vital funds at a deep discount to their market values. ScS fell 2.88 to 5.25p and Land of Leather dropped 2.3 to 9.7p. (Tgraf)