Geoff Cooper: seeking 'financial headroom'.
TP taps investors
Published: 14 May, 2009
NORTHAMPTON: National merchant Travis Perkins issued a £300m cash call in a bid to slash the group's £985m debt. The company said it needed the rights issue despite sales falling less than expected. Shareholders will be asked to buy new shares at a discount.
Chief executive Geoff Cooper said that while the group remained and expected to remain within its banking covenants, "the rights issue will provide significant and additional financial headroom".
The group stated that its revenue for the four months ended 30 April 2009 was in line with expectations, down by 13.6%. Like-for-like sales were down 14.4%, compared to the same period last year.
Shares in the group have lost over a quarter of their value over the past year, but last month, they increased by 43%.
Market analysts believe that the move will see TP's shares rise.
The cash call had been on the horizon since TP reported a fall of 44% in annual profits in February.