The Management Board of TOM TAILOR Holding AG decided, with the approval of the Supervisory Board, to carry out a capital increase against cash contributions through the partial utilisation of authorised capital.
The Company intends to use the proceeds from the capital increase to strengthen its equity ratio, reduce its gearing and acquire shares of subsidiaries. In advance to this transaction, TOM TAILOR GROUP is publishing key figures on its performance in the first nine months of 2013.
- Group sales up 64.6% to EUR 656.0 million
- Improvement of gross profit margin by 4 percentage points to 54.7%
- Recurring EBITDA increases by 52.8% to EUR 47.2 million
- Cash capital increase to strengthen equity base
Increase in sales of around 65%
TOM TAILOR GROUP benefited in the third quarter from an improved market environment and the first positive effects induced by the optimisation programme at the BONITA umbrella brand. In the first nine months of 2013 the Group boosted its sales by 64.6% to EUR 656.0 million (PY: EUR 398.5 million). When making comparisons with the previous year, it should be noted that BONITA was consolidated from August 2012 onwards.
TOM TAILOR Retail was once again the fastest-growing segment in the reporting period. The segment increased its sales by 28.4% to EUR 174.9 million (PY: EUR 136.2 million). The BONITA Retail segment generated sales of EUR 254.2 million; in the third quarter, BONITA recorded like for like growth of 5.3% for the first time since its acquisition by TOM TAILOR GROUP. BONITA's positive performance resulted primarily from im-proved merchandise management and shop floor controlling.
The Group also managed to expand its sales significantly in the wholesale segment (exclusively TOM TAILOR). Sales rose by 10.7% to EUR 226.9 million (PY: EUR 205.0 million) in the first nine months of the year.
Capital increase against cash contributions to strengthen equity base
The transaction will involve the issue of 1,818,098 new no-par-value registered shares, which excludes shareholders’ subscription rights, and will raise the share capital of TOM TAILOR Holding AG from EUR 24,209,035.00 to EUR 26,027,133.00. The new shares are entitled to share in profits from 1 January 2013.
The proceeds generated from the capital increase will serve to strengthen the equity ratio to a target range of between 30% and 35%. As of 30 September 2013, the equity ratio amounted to 26.1% (PY: 28.4%). Net debt of TOM TAILOR GROUP amounted to EUR 276.1 million on 30 September 2013 (PY: EUR 279.4 million), the transaction thus also serves to reduce the gearing ratio.
In addition, the Company plans to use a proportion of the funds raised to acquire minority shareholdings in subsidiaries. Through the purchase of these shares, the Company acts in the interest of its shareholders and should be able to reduce profit distributions to minority shareholders.
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