DFS Furniture PLC Statement re Press Comment (1164K)
20 Aprile 2020 - 08:00AM
UK Regulatory
TIDMDFS
RNS Number : 1164K
DFS Furniture PLC
20 April 2020
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE
A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT
JURISDICTION.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
20 April 2020
DFS Furniture plc
Statement re Press Comment
DFS Furniture plc (the "Company" and together with its
subsidiaries the "Group") notes recent press comment about the
Company considering its options with regard to additional
financing.
On 25 March 2020, the Company provided an update on its actions
in response to the COVID-19 pandemic. This included the intention
to seek additional financing facilities and other cash conservation
and liquidity measures.
Additional financing
The Company confirms that it is in the advanced stages of
negotiating an additional debt facility of GBP60m-GBP70m with its
existing lending banks, to supplement the existing bank facility of
GBP250m. This additional facility will cover the near-term working
capital unwind until sofa deliveries can resume.
Alongside this additional debt facility, the Company is
preparing for a possible non pre-emptive equity issue of up to
19.9% of its existing ordinary share capital, further strengthening
the Group's balance sheet, and providing resilience for a continued
disrupted trading environment.
Further updates will be made as and when appropriate.
Progress on cost mitigation
Alongside the financing actions, the Company has also made
further progress with regards to reducing its monthly cash
operating costs following positive discussions with suppliers and
landlords, together with continued support from the Government. The
Group's mitigated operating cash outflow is now expected to be less
than GBP14 million per month until the Group's showrooms,
manufacturing and distribution operations re-open.
Update on trading
Since the announcement made by the Company on 25 March 2020, the
Group's websites have remained operational and continue to see
strong momentum, with dfs.co.uk online gross sales up by 20.2% over
the period from 25 March 2020 to 17 April 2020. Consequently, the
Group's order banks have grown to a total of approximately GBP192m
from approximately GBP185m.
The Group has in place all measures that are necessary and
appropriate for warehouse activities to operate. Its DFS and
Sofology trading subsidiaries are receiving inbound deliveries of
customer orders from Far East manufacturers, and Dwell is
dispatching parcels from its accessories warehouse. The Group
intends to restart sofa deliveries once it is clear there is a safe
and workable approach for two-person installations into customer
homes.
Outlook
The combination of the proposed additional financing together
with the operating cost mitigation measures is expected to, when
agreed, give the Group significant liquidity to see through an
extended lock-down. The Board is confident that the Group can
navigate the COVID-19 crisis and deliver its strategy over the
longer term when the trading environment normalises.
For further information, please contact:
Tulchan:
James Macey-White / Jessica Reid
/ Amber Ahluwalia 020 7353 4200
Important notices
This announcement contains inside information and is issued on
behalf of the Company by Mike Schmidt, Chief Financial Officer.
There can be no certainty that any possible transaction
contemplated in this announcement will proceed nor as to the terms
on which any possible transaction might be concluded. This
announcement is not intended to, and does not, constitute or form
part of any offer, invitation or the solicitation of an offer to
purchase, otherwise acquire, subscribe for, sell or otherwise
dispose of, any securities whether pursuant to this announcement or
otherwise.
No securities in connection with any possible transaction
contemplated in this announcement have been or will be registered
under the U.S. Securities Act of 1933, as amended, (the "Securities
Act"), and may not be offered or sold in the United States except
pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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