EQS-News: Wolford AG: Management Board welcomes resolved capital increase

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Bregenz, December 1, 2022: The Extraordinary General Meeting of Wolford AG today voted in favor of a capital reduction and a subsequent capital increase.

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EQS

Retrieved on:

Thursday, December 1, 2022

Information

Tags:

Wolford, Alberta Ferretti, Annual, SPAC, Saskatchewan River Sturgeon Management Board, EBIT, Interim, City, Thierry Mugler, GCDS, EUR, Acquisition, Security (finance), Bank

Geotags:

ÖSTERREICH, PARIS

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Organisation:

WOLFORD, WOLFORD AG

Stock Symbol:

ISIN:AT0000834007

Summary

Key Points:

Bregenz, December 1, 2022: The Extraordinary General Meeting of Wolford AG today voted in favor of a capital reduction and a subsequent capital increase.
The capital increase is to be implemented in the first quarter of 2023.
Upon implementation of the capital increase, the Company will receive up to 20,157,450.00 euros.
"Wolford AG will receive up to EUR 20.2 million as part of these capital measures, which will increase the equity ratio to around 10 percent.

EQS-News: Wolford AG

/ Key word(s): Capital Increase

Wolford AG: Management Board welcomes resolved capital increase

01.12.2022 / 11:58 CET/CEST

The issuer is solely responsible for the content of this announcement.

- Implementation of capital increase planned for first quarter of 2023
- Share capital to rise again to up to EUR 48.4 million
- Equity ratio to increase to 10 percent
- Rising sales and consistent cost control
- Expected tailwind from Lanvin Group IPO

Bregenz, December 1, 2022: The Extraordinary General Meeting of Wolford AG today voted in favor of a capital reduction and a subsequent capital increase. The capital has thus been reduced to EUR 32,251,924.80 and the subsequent capital increase to up to EUR 48,377,884.80 by issuing up to 3,359,575 new no-par value shares against cash contributions has been approved. The capital increase is to be implemented in the first quarter of 2023. Upon implementation of the capital increase, the Company will receive up to 20,157,450.00 euros. The shareholders are granted the statutory subscription right.

"We are pleased that the Annual General Meeting has approved the capital increase. This will strengthen our equity base and allow us to systematically pursue our strategy to further develop the Wolford brand," explains Executive Board member Silvia Azzali (Chief Commercial Officer).

"Wolford AG will receive up to EUR 20.2 million as part of these capital measures, which will increase the equity ratio to around 10 percent. Thus, the company should be prepared for the current challenges," says Executive Board member Paul Kotrba (Interim Chief Operational Officer).

Rising sales and strict cost management of the new management team

In the first half of 2022, Wolford AG was able to increase sales revenues by over 29 percent, as previously reported. However, this was unable to compensate for the sharp rise in costs for materials, personnel, energy and logistics. In addition, there were high other operating costs, mainly consulting expenses - as a result, the operating result (EBIT) amounted to minus 16.9 million euros. The new Management Board team, which has been in place since August 2022, immediately and consistently reduced operating costs. These includes also reduced rental costs as a result of downsized offices at headquarters. Currently, management is focusing on improving operational processes in order to be able to respond more quickly to changing market requirements.

"The positive revenue development shows that we are on the right track," said CCO Silvia Azzali. "However, it still will take some time before this is reflected in earnings.“

In recent months, Wolford has continued to increase its visibility in the market, including six new store openings and store relocations in key cities. In Paris, the company opened a new flagship store on Rue Saint Honoré. With the help of the new collaborations with such renowned brands as Mugler, Alberta Ferretti and GCDS, the company was able to attract new groups of customers. Recently Wolford also started a cooperation with Sergio Rossi, since July 2021 another well-known brand under the umbrella of Lanvin Group.

Expected tailwind from the IPO of the Lanvin Group

The Wolford management is expecting substantial tailwind not least from the stock market listing of the main shareholder Lanvin Group, which is expected before the end of the year. The listing on the New York Stock Exchange will be achieved by means of a reverse merger with the help of a special purpose acquisition company (SPAC).

"Wolford is one of the group's largest holdings and accordingly our company will also benefit from a stronger position for the entire Lanvin Group," explained Azzali.

01.12.2022 CET/CEST This Corporate News was distributed by EQS Group AG. www.eqs.com

Language:	English
Company:	Wolford AG
	Wolfordstrasse 1
	6900 Bregenz
	Austria
Phone:	+43/5574/6900
E-mail:	[email protected]
Internet:	www.wolford.com
ISIN:	AT0000834007
WKN:	83400
Indices:	ATX
Listed:	Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Munich, Stuttgart; Vienna Stock Exchange (Official Market)
EQS News ID:	1503041


End of News	EQS News Service

1503041 01.12.2022 CET/CEST