UK honey producer and spirits distiller The British Honey Co. (BHC) has ended a sales process and has received new funding, it has revealed.
In October, the London-listed company announced a review of its strategic and financing options, which it said could include the sale of the company. The news followed a warning that its 2022 financial results would fall below expectations.
But in an announcement to the London Stock Exchange today, the company, based in Leicestershire in the English Midlands, said it had concluded the review and decided to terminate the formal sale process (FSP).
It said the process had “generated interest from a number of interested parties” but it had concluded that it was unlikely to result in an offer being made for the company at a valuation the board considered attractive to existing shareholders.
But it revealed that Khaled Said, a “substantial” shareholder in the business, has agreed to provide funding amounting to GBP750,000 in the short term.
“It is the board’s intention, with the funding in place, to appoint a full-time finance director and it will also look to strengthen the board’s overall composition, the stock exchange statement said.
The company said the loan will satisfy its near-term working capital requirements for the coming months and will allow it to pay its creditors and other outstanding commitments.
But it added that further capital will be required to support and develop the group over the next 12 months and beyond.
The company said that, with the loan in place, it is in a position to finalise the release of its results for the year ended 31 December 2021 and its interim results for the period ended 30 June 2022 and will seek to complete this “as soon as practicable” and apply for the suspension of trading in the company’s shares to be lifted.
Richard Day, chairman of BHC, said: “We have been through a rigorous review process during the FSP and it is clear we have a good business, with significant opportunities. We have been heartened by the interest and support shown towards the company and very much welcome the funding support provided by our major shareholder Khaled Said.
“Meanwhile, we have enjoyed continued customer demand for our products which we are keen to supply. The board sees clear potential for the next financial year and beyond to show considerable improvement on recent years.”
