23rd Oct 2008 15:36
23 October 2008
THEO FENNELL PLC
("Theo Fennell" or "the Group")
Trading Update and Potential Third Party Investment
Richard Northcott, Chairman of Theo Fennell PLC, the AIM-listed international, luxury jeweller, provides the following trading update for the six months ended 30 September 2008.
Trading
Trading this year began satisfactorily but is being increasingly impacted by the current recession and collapse in the financial markets which has affected consumer confidence.
As part of our planned investment programme, we will be opening three new concessions in Brown Thomas, Dublin in November, and our Middle East partners will be opening new standalone Theo Fennell stores in Emirates Towers, Dubai and in Kuwait City as well as smaller concessions in Jeddah Saudi Arabia and Qatar in the first quarter of 2009.
The overall impact of the downturn in consumer confidence together with our investment programme will result in the company not making a profit in the first half of the year although we continue to be confident of making a small profit for the full year. The Group is taking the necessary actions across all areas of its business to ensure it is correctly positioned as consumer confidence returns. With this in mind, further expansion plans are under review.
Potential third party investment
The Board has received an approach from a party interested in making a significant investment in the business by investing through the subscription of new equity in the Company. Such a transaction would require the vote of shareholders of the Company at a general meeting in accordance with the derogation from Rule 9 of The Takeover Code. This approach would not constitute an offer for the Company and the Company is currently not in any other discussions which may or may not lead to an offer for the Company as a whole. Talks are progressing but there is no guarantee that a transaction will complete. A further announcement will be made in due course.
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Enquiries: |
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Pelham PR James Henderson / Kate Catchpole |
Tel: 020 7743 6673 |
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Seymour Pierce Limited Mark Percy |
Tel: 020 7107 8000 |
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