Laura Ashley slashes cash-call price

FASHION retailer Laura Ashley has been forced to slash the pricing on its emergency rights issue following the sharp collapse in its share price since the start of the year.

The company, raising cash to shut its Continental European operations, is pricing the issue at 6p a share. That's 25% below the price it had indicated when the firm unveiled the cash-call plans in January.

Ashley is now seeking £8.2m, £800,000 less than its previous target. The 1-for-4 rights issue is fully underwritten.

The company added it expected losses of £4.9m for the year to 25 January. That's in line with last month's profits warning. After exceptionals the loss is put at £14.1m. It said like-for-like UK sales had made an encouraging start to its new financial year despite a slip of 1.4% in the eight weeks to 22 March.