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The opinions expressed herein are people's own personal opinions and do not represent the Parish Council's view in any way.

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Shares suspended for furniture company

Shares in the Smallbone Group, the top people's kitchen company, have been suspended following a "challenging" month's trading.

The company, which incorporates Smallbone of Devizes and Mark Wilkinson Furniture, said it had suspended trading while it looks at its options, which will undoubtedly include putting the company up for sale.

In a statement to the Stock Exchange, the company said: "February has been a challenging month for the group.

"Sales have reduced and there has also been a significant reduction in customer deposits. This has caused the board to instigate a further review of its working capital needs for the foreseeable future.

"The initial conclusion of the review is that the financial package announced on February 6 will not be sufficient in these changing circumstances."

On February 6 the company said that it had put in place a financing package to provide up to £5.9million of additional working capital.

The company said: "The difficulty in forecasting the future working capital commitments may mean that the group needs to be part of a larger group, with greater balance sheet strength.

"Therefore the board has begun a strategic review of all options to maximise stakeholder value, including potentially a sale of the group or its trading subsidiaries to a third party, and will update shareholders as soon as possible."

A spokesman for Mark Wilkinson Furniture, based in Bromham, denied rumours that a further 30 employees had been made redundant.

He said: "Mark Wilkinson Furniture has enjoyed a record year in 2008 following a good year before that. We are on line to meet our targets for the first quarter of 2009 and the company is in good shape." 

This is Wiltshire - 3rd March 2009

Posted: Mar 03 2009, 20:48 by The is Wiltshire | Comments (0) RSS comment feed
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