Unbound shares surge after bid approach from WoolOvers
By Frank Prenesti
Date: Tuesday 28 Mar 2023
(Sharecast News) - Shares in Hotter Shoes owner Unbound Group surged on Tuesday after the company said it was minded to accept a bid approach from WoolOvers Group valuing the business £6.8m.
The 10.25p-a-share bid was a 162.5% premium to Monday's close and still 28% ahead of Tuesday's price of around 8p.
Unbound said it would accept if a firm offer is made for the business and added that the contingent value right would give shareholders the right to receive any net proceeds if the company's ongoing business interruption insurance claim relating to the Covid-19 pandemic lockdowns is successful, taking into account administrative costs.
Shares in the firm plunged in January after the group issued a profits warning and said it would review operations.
The company, which sells mainly to the over-55 demographic, said expected to post an adjusted pre-tax loss for the year to February 5 of £4.25m-4.75m compared with a company-compiled forecast of a £1.2m loss.
Revenue was forecast at £53m-54m, lower than the £57.7m forecast and a core loss of £0.75m-1.25m against an earnings estimate of £2.3m.
Unbound, formerly known as Electra Private Equity, cited the extended period of hot weather, UK postal strikes and broader economic conditions, which hit sales of its Autumn/Winter range in the final five months of the year.
The company said it would review its operating structure in order to simplify processes and cut costs.
Reporting by Frank Prenesti for Sharecast.com
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