6th Apr 2020 10:13
(Alliance News) - WH Smith PLC on Monday confirmed it is in "advanced stage of preparation" for an equity issue to shore up balance sheet due to a substantial trading downturn resulting from the Covid-19 pandemic.
The high street books and stationery retailer is planning to issue of a maximum of 13.7% of its issued share capital by way of a placing.
Shares in WH Smith were up 0.3% at 1,013.37 pence each in London.
The FTSE 250-listed firm - which has closed the majority of its stores due to the pandemic - also has secured new lending facilities of GBP120 million, conditional on raising new equity.
The company's hospital branches are still open during UK lockdown conditions, so National Health Service staff have access to food and drink.
"These financing arrangements, coupled with a broad range of mitigating actions to manage the cost base and cash-flow, will provide sufficient liquidity to deal with this most challenging of trading environments," the company said, adding that it will make a further announcement when appropriate.
By Tapan Panchal; [email protected]
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