Marwyn Management Partners PLC Trading update and proposed issue of equity (7973E)

TIDMMMP

RNS Number : 7973E

Marwyn Management Partners PLC

12 February 2015

Marwyn Management Partners plc

("MMP" or the "Company")

Trading update and proposed issue of equity

The Company announces the following update with respect to its key subsidiary (84.5% owned) Le Chameau SAS ("Le Chameau").

Following the appointment of Beverley Williams as Presidente/CEO, the team has been further enhanced during the year by the appointment of Cecile Williot (CFO), and Stephane Ziegler (Operations Director) who have both made an instant impact on the business. Both bring over 20 years' business experience in their respective fields, including international retail experience, which is expected to be a critical factor in the future growth of the business.

The new management team have repositioned the existing retail network in France, as well as rationalising underperforming and non-core product lines. Trading conditions in France remain challenging however, owing to a weak economic backdrop. The result of this is that revenue for 2014 is expected to be down on the prior year. Reliance on the French market, currently c.55% of sales, is being addressed through accelerated development of more buoyant overseas markets such as the UK and the USA where management see very considerable potential.

The core boot range has performed well with year-on-year growth of premium products such as Chasseur and Vierzon, which the Directors believe are best-in-class. This is consistent with the product strategy going forward, focussing on the quality core boot product for which Le Chameau is renowned. New market segments are being targeted, beyond the traditional shooting market, for existing products, new styles and ranges under development.

Under the leadership of Beverley Williams, the management team has developed a cohesive 5 year plan which, the directors believe, will significantly enhance long term value for shareholders. The key components of this plan are as follows:

   1.    Invest in growth

-- To increase sourcing capacity to match growth in sales forecasts, improve production efficiency, upgrade logistics capability and ensure best practice across the business

-- To implement a new IT (ERP) system to provide alignment between each area of the business (sourcing, logistics, sales and finance) as well as providing a platform from which to deliver e-commerce. Management has already engaged a provider and implementation team to commence this project in Q1 2015

   2.    Implement an expansive sales strategy

The following key objectives are prioritised:

   --    The product is widely available across multiple territories and channels

-- The product is positioned with retailers and consumers in a way that is consistent with Le Chameau's premium brand values and its heritage

-- Le Chameau's online presence is consistent with its brand values and e-commerce becomes a critical part of the omni-channel strategy

-- The business focuses on core markets with greatest growth potential, particularly in new segments where direct sales teams can drive sales

   3.    Invest in the brand

To develop the brand both internally and externally via several key initiatives:

-- Create a "Centre of Excellence" at Le Chameau's longstanding base in Normandy ("Le Manoir") showcasing Le Chameau's product and heritage to customers, partners and employees

-- Develop co-branding relationships with complementary brands; several partnerships are already in the pipeline

-- Targeted marketing campaigns and public relations efforts to drive awareness both off and online

The Directors believe that management must implement each part of the plan concurrently as the parts are inter-dependent. To fund the capital requirements of the strategy set out above, the increased working capital needs of the business, MMP proposes to raise up to GBP10.0 million, by way of an issue of ordinary shares in the Company at a price of 4.125p. The Company may also raise up to a further GBP2.2 million on the same basis to increase its interest in Le Chameau through purchasing existing shares and loan notes in its subsidiaries.

The Company is in advanced discussions with MMP's largest shareholder, Marwyn Value Investors LP ("MVI") to underwrite the entire placing, which would be subject to shareholder approval. A further announcement is expected shortly.

Enquiries:

Mark Kirkland (Marwyn Management Partners plc)

Telephone: 0207 004 2700

Paul Shackleton/ Adrian Hadden (WH Ireland Limited)

Telephone: 020 7220 1666

This information is provided by RNS

The company news service from the London Stock Exchange

END

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