Beaconsfield Footwear Disposal

Unbound Group PLC

18 July 2023

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

Unbound Group plc

("Unbound", the "Company" or the "Group")

Completion of Disposal of the trade and assets of Beaconsfield Footwear Limited (in administration)

On 17 July 2023, the Company announced that the directors of the Group's main operating subsidiary, Beaconsfield Footwear Limited ("OpCo"), intended to appoint Will Wright and Rick Harrison of Interpath Advisory Limited as administrators to OpCo.

The Company has been informed that, shortly following their formal appointment today, the administrators completed a sale of the business and assets of OpCo to Buckminster Hamilton Limited, an entity controlled by WoolOvers Group Limited, for a total cash consideration of £6.7 million, which was paid in full on completion. Completion of this transaction is not expected to result in any value attributable to the Company's existing shareholders. In its latest published audited accounts for the 52 weeks ended 30 January 2022, Opco incurred a pre-tax loss of £1.3 million. OpCo's gross assets were £40.8 million (including amounts owed by group undertakings of £20 million) and net liabilities £3.9 million at 30 January 2022. OpCo's net bank indebtedness at 14 July 2023 (the latest practicable date prior to publication of this announcement) was £9.7 million.

The disposal of the business and assets of OpCo by the administrators divests the Company of its main trading business. As notified on 17 July 2023, Unbound Group plc is not a trading company and has no operating revenues. The Company currently has minimal cash balances and known creditors of approximately £0.9 million. Whilst the Company holds certain investments that the Board believes are likely to have a value in excess of the amounts due, it is also likely to take some time to realise these assets and there is uncertainty as to whether the Company is able to pay its debts as they fall due.

The Company's ordinary shares remain suspended from trading on AIM with effect from 07.30 a.m. on 17 July 2023 pending clarification of the Company's financial position. The board of directors of Unbound Group plc continues its review of options available to the Company and further updates will be provided as appropriate.

Enquiries

Unbound Group plc Neil Johnson, Chairman Ian Watson, CEO Gavin Manson, CFO	c/o Alma PR
Singer Capital Markets (Financial Adviser, Nominated Adviser & Broker) Peter Steel / Tom Salvesen / Alaina Wong / James Fischer	[phone]
Interpath Advisory Ltd (Joint Financial Adviser) Will Wright / Rick Harrison	[phone]
Alma PR Limited (Financial PR) Josh Royston / Sam Modlin / Hannah Campbell	[phone] [e-mail]

Market Abuse Regulation

The information contained within this announcement would have, prior to its release, constituted inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No.596/2014 as incorporated into UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019 ("UK MAR"). Upon the publication of this announcement via a regulatory information service, this inside information will be considered to be in the public domain. For the purposes of UK MAR, the person responsible for arranging for the release of this information on behalf of Unbound is Gavin Manson.

 

END