Portmeirion raising funds to capitalise on growth opportunities

(Sharecast News) - Homewares company Portmeirion Group announced a proposed placing via an accelerated bookbuild on Wednesday, to raise gross proceeds of around £10m at an issue price of no less than 375p per share.
The AIM-traded firm said the results of the placing and the final issue price per share would be announced as soon as possible following the bookbuild.

It also announced a direct subscription with the company to raise gross proceeds of £0.66m, at the issue price.

In addition, in order to provide qualifying shareholders with an opportunity to participate in the fundraising at the issue price, subject to the successful closing of the placing, Portmeirion said they would be able to subscribe for open offer shares, to raise up to a further £2m for the company.

The number of open offer shares would be determined following confirmation of the issue price.

"The group is a cash generative and profitable business which has seen 11 years of consecutive revenue growth and has a strong balance sheet in the form of significant net assets, and as at 9 June has net debt of £12m and total borrowing facilities of £27m," the board said in its statement.

"Key sales markets include the UK, US and South Korea.

"The group benefits from a new management team with a refreshed strategy focused on growth and margin improvement."

Portmeirion said that, although group sales had in the short term been "significantly impacted" by Covid-19 due to lockdowns globally and retailer closures, it had seen accelerated trends and opportunities, including the growth of e-commerce sales and the consumer trend for home dining.

"Therefore, the board believes it is in the long-term interests of all shareholders to capitalise on significant growth opportunities."

It said it currently intended to use the majority of the net proceeds from the fundraising to accelerate its growth strategy and margin improvement.

In particular, it was aiming accelerate all online channel sales growth and increase next-day delivery warehouse capacity, extend the Wax Lyrical line to hand and body products, build a more significant presence in Canada and "revitalise" the Canadian market, and invest in UK manufacturing efficiencies driving improved operating margins, as well as maintain a strong balance sheet.

At 0946 BST, shares in Portmeirion were up 3.9% at 400p.