Monsoon trading strongly as buyback deadline approaches
Peter Simon seeking greater board representation
September 17 2003
Monsoon has reported a continued increase in sales as plans by company founder Peter Simon to take the business off the stock market come to a head.
The independent directors of Monsoon have issued a statement saying that total sales for the 14 weeks September 6 are 28 per cent, with like-for-likes up 10 per cent. The overall performance of the group, which operates the Monsoon and Accessorize chains, remains strong.
October 3 is the deadline for shareholders to exercise put options issued by Stoneycroft ltd., representing a Simon family trust, which aim to increase the family’s control to more than 90 per cent of total shares. At that point, Monsoon will delist from the main stock market but may maintain a smaller AIM listing.
The independent directors have repeated their advice to shareholders to seek independent professional advice where necessary, and to bear in mind the exercise price of the put options, the trading performance of Monsoon and the consequences of remaining a minority shareholder in Monsoon.
The statement also said the Monsoon board has received a letter directors of Beauchamp (UK), which controls 62.7 per cent of the issued share capital, requesting board representation. Peter Simon is the sole beneficiary of the Beachamp trust. The request will be considered at the next board meeting.
Following that annoucement. Stoneycroft issued a statement sayng that it also intends to seek representation on the board of Monsoon commensurate with its shareholding. The moves would effectively give Simon much stronger control on the business.
Stoneycroft said that as of September 12, enough put options had been received.to give it an interest in 9.99 per cent of the share capital of Monsoon.
In all, the combined interests of Stoneycroft, the Stoneycroft Trust, the Beauchamp Trust and Peter Simon represent account for 92.5 per cent of Monsoon shares, subject to full exercise of the put options.
In a separate anouncement, John Spooner, currently Monsoon’s international development director and an independent director along with Graham Frost, Rose Foster and John Clark, is to retire in January 2004.
Peter Simon said: “I very much regret John’s decision to retire from the business in the New Year. We have worked together for over 20 years. The business and I owe him very much. His commitment and in particular passion for the business has been enormous.
“Since June 2001, he has developed the international business with great vision, energy and success. I shall personally miss John and would like to thank him for his invaluable contribution to the development of Monsoon and Accessorize.”
