WNS Wensum

 

TIDMWNS 
 
RNS Number : 1793Q 
Wensum Company PLC 
06 April 2009 
 

6 April 2009 
 
 
The Wensum Company plc 
("Wensum" or the "Company") 
 
 
Restructuring progress and trading update 
 
 
Wensum today presents a progress report on the Group's restructuring programme 
and an update on current trading. 
 
 
Wensum acquired Crown East Group Limited in December 2008 through a reverse 
takeover.  At the time of that transaction, the new board of Wensum set out its 
plans to integrate the operations of the enlarged Wensum and develop the 
business by further consolidation of the fragmented market for corporatewear and 
associated products in the UK and other European markets. 
 
 
Wensum is pleased to announce that it has substantially agreed the terms of a 
further significant acquisition in the corporatewear sector (for non-cash 
consideration) and hopes shortly to be able to announce further information in 
relation to this transaction. 
 
 
During the first quarter of 2009, the Company initiated the closure of Wensum's 
previous head office at Gatwick and the concentration of all head office 
activities of the enlarged group in Derby.  This process will be completed 
during April 2009 and Wensum is on course to deliver the substantial overhead 
savings envisaged in December 2008. 
 
 
Adverse exchange rate movements have, however, created substantial pressure on 
gross margins during the last months of 2008 and the first quarter of 2009. 
 This pressure, coupled with a sharp downturn in sales due to general trading 
conditions and exceptional acquisition and restructuring costs, will give rise 
to significant trading losses for the period ended 31 December 2008 which will 
continue for the first half of the current year.  The Company expects to publish 
its audited accounts for the period ended 31 December 2008 next month. 
 
 
Management is taking steps to rebuild margins both through supply chain 
changes and through price negotiations with suppliers and customers.  The board 
believes that, subject to these actions being successful and a return to 
reasonable market stability, the Company should achieve its objective of 
achieving operating profitability by the end of the year.In the meantime, the 
board is examining various means of improving the Company's liquidity 
position which has come under pressure as a result of the trading conditions 
referred to above. 
 
 
The Company will make further announcements in due course. 
 
 
 
 
Enquiries: 
 
 
+--------------------------------------------+---------------------------+ 
| Wensum                                     | 07860 318440              | 
| Stephen Dorrell, Deputy Chairman           |                           | 
+--------------------------------------------+---------------------------+ 
|                                            |                           | 
+--------------------------------------------+---------------------------+ 
| Smith & Williamson Corporate Finance       | 020 7131 4000             | 
| (Nominated Adviser and Broker)             |                           | 
| Azhic Basirov                              |                           | 
| David Jones                                |                           | 
+--------------------------------------------+---------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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