12th Oct 2018 16:03
LONDON (Alliance News) - Patisserie Holdings PLC on Friday said it hopes to raise a combined GBP25 million through a share placing as well as a loan from Executive Chairman Luke Johnson.
The Patisserie Valerie owner has been struggling since it announced potentially fraudulent accounting irregularities on Wednesday.
On Thursday, Finance Director Chris Marsh was arrested and released on bail, while on Friday the UK Serious Fraud Office said it is investigating an unnamed individual connected to the firm.
Patisserie said Thursday it needed immediate cash to keep going - and has now said it needs "no less than" GBP20 million to continue trading in its current guise and avoid administration.
As a result, it is planning to issue 30 million shares at 50 pence each to raise GBP15 million. Shares were last quoted at 429.50p each, with the stock suspended from trading currently following Wednesday's news.
The bookbuild is being run by Cannacord Genuity Ltd.
On top of this, Patisserie expects to agree imminently a new bridging loan with Executive Chairman Johnson worth GBP10 million to allow it to repay in full its immediate liabilities.
Patisserie also said Friday its net debt currently stands at GBP9.8 million.
Further, for its year ending next September, it has guided for revenue of approximately GBP120 million and earnings before interest, tax, depreciation, and amortisation of around GBP12 million, before exceptional costs.
This would compare to revenue of GBP114.2 million and Ebitda of GBP25.6 million for its year ended September 2017.
The company did warn, however, that this guidance is based on limited analysis.
It said the investigation into its financial irregularities are at a very early stage, and it cautioned they could result in further losses for the company and shareholders.
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Patisserie Holdings Plc