Parsley Box shares plunge on plan to raise funds
Parsley Box co-founder Adrienne MacAuley with CEO Kevin Dorren
Shares in Parsley Box, the ready meals company, plunged 15% after it announced plans to raise funds in the new year.
The board, which has seen its value slump since its IPO in March, said certain members of the board together with their associates have indicated their intention to invest, “demonstrating their strong support for the company.”
The plan was announced in a trading update in which the company said it is on track to deliver full year revenue marginally over the £25m forecast, representing modest year on year growth.
However, the shares closed 6.50p lower (15.12%) at 36.5p , valuing the company at just £20.8m compared to an issue price of 200p at the IPO when the firm was capitalised at £83.8m.
The company, chaired by Chris van der Kuyl, provides ready meals to the older Baby Boomer market and has appointed former John Lewis Partnership manager Simon Russell as managing director. He will be responsible for customer service, product development and the day-to-day running of the UK business.
AJ Bell investment director Russ Mould said: “The worst performing IPO of 2021 is going from bad to worse. Parsley Box is getting ready to go cap in hand to investors to ask for more money to help get the business back on track.