Clinton Cards to fight back with refinancing and robust sales
Tuesday 31 March 2009
The greetingS card retailer Clinton Cards is expected to reveal today it has renegotiated its loan facilities, alongside better-than-expected interim trading results, in moves that will rebuff speculation about its financial stability.
Clinton Cards is understood to have renegotiated with its banks debts comprising a £60m working-capital facility and a £12m loan, which is due to be repaid in December. However, market sources said the retailer has paid a substantial fee for the refinancing.
Clinton was under pressure as it had to sign the new loans in time for its auditors to be able to sign off the company's final accounts as a going concern. David Stoddart, an analyst at Altium Securities, said: "The key thing for retailers at the moment is to have a facility to carry them through the recession."
Clinton Cards, which operates the eponymous chain and Birthdays fascia, declined to comment.
Today, Clinton Cards is expected to say that trading has been better than the market expected for the 26 weeks to 1 February, boosted by additional sales from the collapse of Woolworths and the Celebrations Group, which both fell into administration late last year. The administrator to Celebrations Group, which ran 288 Cardfair and Card Warehouse stores, sold 74 shops to rival Card Factory in December, but could not find a buyer for the remainder of the estate.
In January, Altium forecast that, given the deteriorating retail environment, Clinton's underlying sales would remain negative in the second half, leaving its full-year like-for-like sales down by about 5 per cent.
In January, Clinton said that group like-for-like sales fell by 4.1 per cent in the five weeks to 4 January 2009.
On the same day, the retailer said it had made its fourth scheduled loan repayment of £12m on 15 December 2008 and that its final instalment of £12m will be repaid in December.
Shares in Clinton have plummeted by 83 per cent over the past 12 months. Yesterday, the retailer's shares inched up by 0.02p to close at 9.65p.
This month, Altium forecast an adjusted full-year pre-tax profit for Clinton of just £200,000, compared with a profit of £19.5m last year.
Last month, Barry Hartog, Clinton's group commercial director, vehemently denied speculation that it was considering measures such as a company voluntary arrangement to protect itself from creditors.
- 1 What if 35 Palestinians had died, and 800 Israelis?
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
Disney heiress Abigail disowns her share of family profits in West Bank company
Richard Norris: Man who had whole face transplant after being shot becomes GQ star
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
- < Previous
- Next >
iJobs Money & Business
Negotiable: Harrington Starr: Client Services Associate (Microsoft Office, Ana...
Negotiable: Harrington Starr: Graduate Data Operations Analyst (Graduate, Anal...
£40000 - £50000 per annum + benefits+bonus+package: Harrington Starr: Dynamics...
£4000 - £30000 per annum + benefits+bonus+package: Harrington Starr: Front-end...