Morning:
10°c
Topps Tiles £15m share issue
24 Nov 2009Topps Tiles is raising £15 million from investors to shore up its balance sheet and leave it with cash to fund expansion.
The tile and flooring specialist is placing 17 million new shares in the market today — that's around 10% of its issued share capital.
Chief executive Matt Williams said the move will “build in some comfort” for the company.
“It means we will be able to weather a further downturn and get back on the front foot and expand the business when the outlook turns.
“There are encouraging signs of stability lately,” the Topps boss added.
The share placing is being handled by KBC Peel Hunt.
Topps refused to say what KBC's fees will be, but insisted the deal is cheaper than recent rights issues have been.
In the year to the end of September, sales fell 10.6% to £186 million. Profits halved to £16.4 million.
The company isn't paying a dividend to aid its debt repayment plan.
In the seven weeks since the year end, sales declined 2%.
