Joules raises £15m in share placing to get it through the Covid-19 crisis
Joules has announced the successful completion of a share placing with nearly 19 million new ordinary shares having been placed. It raised £15 million in gross proceeds.
The company said that those proceeds are being used to provide it with “sufficient liquidity headroom in a Covid-19-related downside scenario, as well as allow the company to emerge relatively stronger from this unprecedented situation”.
All of its directors, including founder Tom Joule and CEO Nick Jones, participated in the placing, with the top team's joint purchases adding up to nearly 8% of the total.
Nick Jones said the action “will help Joules to deliver its long-term growth plans as well as supporting the business to successfully navigate through the current unprecedented trading environment. We are delighted with the levels of support from our shareholders, which reflects broad recognition of the strength of the Joules brand and our business model as well as our exciting, long-term prospects.”
The placing shares will represent around 17.3% of the company's enlarged issued share capital.
Joules has been one of the stronger players in the battered UK retail sector in recent periods and, despite some supply chain issues during the important festive trading season, has consistently turned in strong sales and profit rises. In a sector where not every business is expected to survive, it's seen as one of the most likely to come out of this relatively strongly.
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