A week after the last statement from Safestyle UK, in which they alerted markets and the wider sector that they were seeking an injection of cash from a third party investor, they have released a new statement which they call a response to media speculation.
In this new statement, they confirm that the continuation of their bank’s help in funding the rolling credit facility is dependent on the success of talks with third parties. They also open the door to the company being sold.
Here is the statement in full:
Safestyle UK plc (AIM: SFE.), the leading UK focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, notes latest press coverage and provides an update on the status of the ongoing work outlined following its previous update on 3 October 2023.
The Board confirms that it has engaged Interpath Advisory to assist with the process that the Group is continuing to explore, which may include a capital injection or new financing, a potential sale of the shares in the subsidiaries and/or a sale of the business and assets of the subsidiaries (“the Process”).
The Board can also update the market that the Process underway has resulted in a number of different parties declaring their interest at this time and the Board and its advisors will continue to engage with these parties in the coming days.
As also outlined in the most recent update on 3 October 2023, the Board continues to engage with the Group’s bank, which remains supportive whilst re-iterating that maintaining its ongoing support is still expected to be inter-conditional on achieving a positive outcome from this process.
A further announcement will be made as and when appropriate.
View the original statement here: https://otp.investis.com/clients/uk/safestyle/rns/regulatory-story.aspx?newsid=1724358&cid=656
The statement confirms that the bank continuing to support the business is contingent on Safestyle being able to find new investors and being able to inject new cash. It is a week on from the previous statement and as of yet there have been no new announcements about new investors in the company.
What is perhaps more dramatic, and may cause a reaction in the markets when they open tomorrow morning is the mention that they have hired Interpath Advisory to help the company find a resolution, including the possibility that the business might have to be sold. The mere mention of this will likely spook investors as this is the first time said out loud that there is a possibility that the company might have to be sold.
Catch up on the previous statement here: https://www.doubleglazingblogger.com/2023/10/safestyle-seeks-new-investment-in-bid-to-inject-cash/
All eyes will be on markets tomorrow morning.
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