The Core Business PLC
(`Core' or `the Company')
Trading Update, Placing of New Shares and New Contracts
9 November 2007
The Core Business (LSE: CORE) is pleased to announce that the first half of the
current financial year has seen a significant increase in the level of sales.
This has been due to a combination of the successful acquisition of Amirose
International Limited in July, and the development of a growing brand
distribution business within Core. Group sales for the six months to 30
November 2007 are expected to be just under £1m.
The brand distribution activities within Core have developed at a faster pace
than expected, and this in turn has required increased levels of working
capital. As a result, the Company has placed 19,047,619 new Ordinary 0.5p
Shares at 1.05p per share, raising a total of £200,000 to fund this additional
working capital requirement. The new shares are due for admission to trading on
AIM with effect from 13 November 2007.
The Company is also pleased to announce that it has entered into an agreement
with Ulric de Varens SA which owns Ulric De Varens - a range of leading French
mass market fragrances. The agreement is to establish a subsidiary to launch and
build the Ulric de Varens fragrance brands in the UK.
As part of this agreement Core will hold a 20% stake in a new and yet to be
established subsidiary. In addition, Core will receive a management fee in
excess of GBP150,000 over two years, commencing from 1 November 2007. Core will
manage the marketing and commercial activities for the Ulric de Varens fragrance
brand in the UK and is in final negotiations with a major high street retailer
to launch this brand in early 2008.
Ulric de Varens SA is the leading mass fragrance manufacturer in France. The
Company is listed on the Paris Stock Exchange (Euronext, Eurolist Compartment
C), has more than 26 years of experience and achieves 75% of its sales in export
markets. With sales of over Euros 20 million in the first half of 2007 (an
increase of 8.4 per cent. compared to the equivalent period in 2006) Ulric de
Varens SA is seeking to build a significant fragrance business in the UK.
In addition Core has secured an exclusive 5 year UK distribution agreement, for
Bloom colour cosmetics. Founded in 1993 Bloom is a successful Australian beauty
brand, and is currently distributed in 14 countries including Australia, USA,
France, Japan, Hong Kong and South Africa. Currently in advanced negotiations
with leading UK retailers, Core expects to roll out Bloom in the second quarter
2008.
Furthermore, Amirose International Limited, the recently acquired, wholly owned
subsidiary of Core, has secured the launch into Tesco via the in-store
promotions company JML Limited, of Radiance, a skincare product. This is the
first time an Amirose product has been listed into Tesco.
Core's Chief Executive Officer Stirling Murray said today;
"I am delighted that we have secured the agreement with Ulric de Varens and the
distribution deal with Bloom. We are pleased to be working with Ulric de Varens
and look forward to mirroring their success in France here in the UK. Bloom will
add significantly to our distributed brands portfolio and following the
successful launch in 2007 of Elite Models Fashion colour cosmetics and beauty
accessories gives Core a sizable strength in the beauty business.
We are making good progress with the early results following the acquisition of
Amirose at the end of July. Both Core and Amirose are delivering strong
revenues, well in excess of the equivalent figures for last year, and the new
working capital will allow us to make the most of these opportunities"
-ENDS-
For further information please contact:
The Core Business plc
Stirling Murray, Chief Executive Tel: +44 (0) 207 483 430
www.thecorebusiness.co.uk
Blomfield Corporate Finance Limited
Nick Harriss Tel: + 44 (0) 207 512 0191
Notes to Editors
The Core Business was established in May 2004 by Stirling Murray to create,
develop, launch and distribute personal care and beauty brands. It also provides
consultancy and brand management services. The Core Business listed on AIM in
March 2006 under the ticker `CORE.' It recently acquired Amirose International
Limited to enhance its distribution ability in the UK.