UK: Blacks renews share plan, posts loss
By Joe Ayling | 30 April 2010
Outdoor clothing retailer Blacks Leisure has re-launched a plan to raise GBP19.7m by share placement, after it was postponed in February.
In aggregate, 39.3m new ordinary shares are proposed to be issued through the proposals.
The original share issue was called off when leading shareholder Sports Direct looked to block it, before making a GBP26.4m (US$40m) takeover offer that was rejected by Blacks.
The new placement depends on approval of Blacks shareholders at a meeting in May.
Net proceeds will be used to open new outdoor stores and refurbish of existing ones. Blacks will also cancel the group's seasonal peak working capital facility of GBP7.5m, it said.
Neil Gillis, chief executive of Blacks, said: "We are delighted to announce another fundraising so quickly after the abandonment of the group's proposed February fundraise and the subsequent approach from Sports Direct.
"The fundraising proposals being announced today will enable us to pursue the crucial growth phase of our recovery plan. The proceeds will underpin a selective expansion of our outdoor retail estate by the addition of up to 35 new stores, in towns where we have previously traded successfully or which currently lack an outdoor retail offer, and accelerate the refurbishment of our core estate which has suffered from years of underinvestment."
The retailer also announced its results for the year ended 27 February 2010 today (30 April).
The business finished the year with like-for-like sales up 5.4%. Total group loss before tax was GBP46.9m, reflecting total exceptional costs of GBP30.1m.
Last year Blacks posted a FY loss of GBP5.7m.
Click here to view the company's full financial statement.
Companies: Sports Direct, Blacks Leisure
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