Fashion brand and retailer Superdry (LON: SDRY) is raising £12m at 76.3p a share and individual investors have a chance to get involved via a REX retail offer. The share price ended the day at 84.6p, down 1.4p.
The fundraising became a possibility after the trading statement on 14 April. Trading has been difficult, and the balance sheet requires shoring up. The sale of IP assets in Asia Pacific will raise £34m – dependent on shareholder approval. The borrowing facility has been increased until the disposal is completed.
Retail sales are growing, but at a slower than expected rate. Wholesale is not doing so well. Revenues will be in the range of £615m to £635m in the year to April 2023. The forecast loss was doubled to £12m.
There are £35m of annualised savings identified. There will be costs related to the savings. This should provide a stable base from which to grow. Superdry is expected to return to pre-tax profit this year.
Retail offer
There is a minimum subscription of £50 and intermediaries involved at Interactive Investor, AJ Bell, Hargreaves Lansdown and Jarvis Investment Management. The offer closes at 5pm on 3 May.
Julian Dunkerton is underwriting the fundraising and if his stake goes above 30% then the company will seek a waiver at a general meeting, so he does not have to bid for Superdry. He currently owns 24.7%.
