3rd Mar 2009 07:45
Smallbone plc ("Smallbone" or the "Group")
Suspension and Strategic Review
Smallbone announces that trading in its Ordinary Shares on the AIM market of the London Stock Exchange has been suspended.
February has been a challenging month for the Group. Sales have reduced and there has also been a significant reduction in customer deposits. This has caused the Board to instigate a further review of its working capital needs for the foreseeable future. The initial conclusion of the review is that the financial package announced on the 6th February will not be sufficient in these changing circumstances.
The Board believes that the difficulty in forecasting its future working capital commitments may mean that the Group needs to be part of a larger group, with greater balance sheet strength. Therefore the Board has begun a strategic review of all options to maximise stakeholder value, including potentially a sale of the Group or its trading subsidiaries to a third party, and will update shareholders as soon as possible.
In the meantime, the Board has requested that the Ordinary Shares in the Group be suspended pending clarification of the funding of Smallbone plc, the Group's holding company, and the outcome of the strategic review.
Enquiries:
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Smallbone plc
Gordon Montgomery
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01380 729 090
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Teathers
Shaun Dobson / Dan Webster
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020 7426 9000
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Related Shares:
Strategic Minerals