Boohoo is preparing to raise around £35mn of cash by issuing new equity shares, equivalent to around 11% of its market value before the announcement. This comes as the group looks to bring its debt down to target levels by year-end.
Full-year guidance remains intact, with underlying cash profits (EBITDA) of £50mn expected. Underlying cash profits are then expected to grow at double-digit rates in 2027.
The shares fell 12.4% on the day of the announcement.
Our view
HL view to follow.
Boohoo key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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