Fuller’s raises over £53m through share placing
The placing comes as the company has predicted an 80% year-on-year fall to group revenues for the 12 months ended 28 March 2020
Fuller, Smith, and Turner (Fuller’s) has announced the successful placing of over almost 6.5 million ordinary shares in the capital of the company, raising approximately £53.6m.
Valued at 40 pence per share, the 6,455,447 new A ordinary shares equate to roughly 20% of the group existing issued A ordinary share capital.
Fuller’s has also revealed that it is providing B ordinary shareholders the opportunity to purchase B ordinary shares.
Directors at the group have committed to contribute £225,000 to subscribe for A ordinary shares at 830 pence per share, and have applied to acquire 132,528 B ordinary shares.
The proceeds from the placing will be used to strengthen the group’s balance sheet, provide additional liquidity, and enable the firm to return to pre-pandemic debt levels by early 2022.
Simon Emeny, chief executive at Fuller’s, said: “The additional financial flexibility we are seeking to put in place will enable us to further capitalise on the opportunities open to us as we execute our recovery plan and regain growth momentum.”
The placing comes as the company has predicted an 80% year-on-year fall to group revenues for the 12 months ended 28 March 2020.
The firm attributed the sharp fall in revenue to the fact that it forecasts that pubs will have only traded for 27% of the time between 20 March 2020 and 12 April 2021.
Emeny added: “The last year has been hugely demanding both for our business and the wider hospitality sector but we have risen to the challenges presented by the pandemic to emerge stronger, which is the Fuller’s way.
“We have used the time wisely, rightsizing our teams, building our digital capabilities by continuing to innovate, as well as investing in our properties, and we are confident that we are in the best possible position to reopen.”
