Shares

Super Ted to the rescue? Ted Baker banks on ted’s formula for growth with share sale

The share price of Ted Baker slumped by over 15 percent on Monday after the troubled clothing brand revealed a £70.4m net loss for the full year ended January 25th 2020. The loss represented a variance of negative £94.9m.

In revealing the dire results, Ted Baker revealed that it is looking to raise £90m with an equity raise with new shares being offered at 75p – a 51.1% discount on the closing price of 153p recorded on May 29th.

As it tries to turnaround its fortunes, it revealed ‘Ted’s Formula for Growth’ – a three pronged strategy designed to stablise the business and grow it.

The first ‘building block’ refers to stablilising the foundation of the company with a refreshed leadership and actions such as the equity raising announced today.

The next block refers to driving growth – namely attracting more customers and ensuring its products are more relevant to everyday wearers.

Thirdly, the final block will focus on improving its operational excellence – this includes upgrades to IT systems, streamlining its supply chain and improving profitability of retail stores.

In announcing the new strategy, Ted Baker claimed there were exciting opportunities ahead:

“Today we are excited to launch ‘Ted’s Formula for Growth’, a comprehensive strategy for the Ted Baker brand which is supported by a significant recapitalisation of the business, that strengthens our position and enables us to both execute that transformation, and navigate through the disruption caused by COVID-19. 

The Ted Baker brand is much loved, it has a unique personality and character built up over many decades, and that provides us with a remarkably strong foundation from which to continue our international growth.  Over the past 6 months our new executive team have pulled together and undertaken a thorough review of the business, identified key opportunities and acted decisively in a number of areas. I would like to thank each and every one of our team at Ted Baker for their extraordinary commitment over the past few months and I look forward to working with them to deliver this transformation and the exciting opportunities ahead.

Rachel Osborne, CEO, Ted Baker

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