Best of the Best PLC Trading Update & Conclusion of Formal Sale Process (1018Q)
February 24 2021 - 01:00AM
UK Regulatory
TIDMBOTB
RNS Number : 1018Q
Best of the Best PLC
24 February 2021
Best of the Best plc
("Best of the Best", "BOTB", "the Company" or "the Group")
Trading Update
&
Conclusion of Strategic Options Review under Formal Sale
Process
Best of the Best plc, (LSE: BOTB), the provider of online
competitions to win cars and other prizes, is today pleased to
provide an update to shareholders on the continuing strength of
trading through the third quarter of the financial year and that
the Board has concluded the review of options as announced on 17
June 2020 under a formal sale process (as defined by the Takeover
Code).
Trading in the third quarter to 31 January 2021 has continued in
line with the positive outlook set out in the Company's interim
results announced on 14 January 2021, and the Company reiterates
the guidance that it remains on track to outperform its previous
management expectations driven by the traction of the pure online
model and increased confidence in marketing investment. Strong
trading and ongoing efficient cash conversion are reflected in the
Group's increased cash balances which remain in excess of GBP10
million following the payment of the special dividend totalling
GBP3.75 million on 5th February 2021.
The Board is therefore highly confident in the Group's prospects
for the future and has concluded, following extensive talks with a
range of parties from a number of sector verticals and private
equity, that it is in shareholders' best interests to focus on the
continuing growth of the business under its existing strategy. This
pure online strategy, with a focus on cash generation, enables a
policy of consistent shareholder returns.
The Company entered into this review of options to explore
early-stage discussions with a number of interested parties in an
orderly fashion. The "formal sale process" mechanism was adopted in
order to facilitate these discussions with certain regulatory
dispensations under the Takeover Code, but was not intended to
indicate that a sale was the most likely or preferred outcome, only
an option. The Board was determined that the review would not
distract from the Group's operations or extend longer than
necessary, but the pace of these talks was unavoidably impacted by
the restrictions relating to Covid-19.
With the conclusion of this review process, the Company is
therefore no longer in an "offer period" as defined by the Takeover
Code.
William Hindmarch, Chief Executive, said:
"I am pleased to report that the strong trading momentum
reported at the time of our interim results has continued and that
our strategy is proving out as well as it has. The Board is
confident in the Group's position and outlook for strong, sustained
returns.
"The strategic review was initiated to originate and facilitate
exploratory talks with potential partners more openly than would
otherwise be advisable for a public company. The extent of interest
in the Group was very pleasing, from a wide range of sectors, each
offering an interesting viewpoint on the Group and its operations.
Talks with a select few advanced to detailed stages but, after
careful reflection and in view of the strength of the business'
performance, the Board concluded that it would be in the Group's
and its shareholders' best interests to focus on the continuing
growth of the business under its existing strategy. The Board is
grateful for the time invested by parties in exploring these
partnerships, combinations and transactions.
"With an online-only model and an increasingly proven track
record on marketing investment, I am excited about the future and
look forward to updating shareholders further at the time of our
full year results."
Enquiries:
Best of the Best plc William Hindmarch, Chief T: 020 7371
Executive 8866
Rupert Garton, Commercial
Director
Buchanan Chris Lane T: 020 7466
Toto Berger 5000
Charlotte Slater
Oakvale Capital Daniel Burns T: 0207 580
(Financial Adviser) Kieran Davey 3838
finnCap Corporate Finance T: 020 7220
(Nominated Adviser and Carl Holmes 0500
Broker) Kate Bannatyne
ECM
Alice Lane
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation 596/2014
Please visit www.botb.com for further information
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END
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