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PDG shares suspended
May 9 2008 by Graeme King, The Journal
SHARES in books and novelty goods retailer Premier Direct Group have been suspended after it asked for time to secure new funding.
Yesterday the South Tyneside firm said it had requested suspension “pending clarification” of its financial position. Directors said they had reviewed cash flow expected in the short to medium term and decided they needed more financial support to continue trading.
It was starting urgent talks with its lenders but could not guarantee building a new package.
Last month PDG, which sells in workplaces via 500 self-employed salespeople, announced £924,000 pre-tax half-year profits, up from £846,000 in a year. But revenue fell to £10.7m from £12.7m. Chief executive Eric McClenaghan said then: “I wouldn’t say we are immune from the downturn, but we are reasonably immune.”
