UK ice cream maker Hill Station is hoping a share offer will inject fresh cash into the business after a sharp fall in sales due to the recent bad weather in the country.
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The company said today (30 July) that it plans to raise GBP3m (US$6.1m) to provide additional working capital for the business and to fund its planned acquisition of The So Real Ice Cream Co.
The upmarket ice cream maker said sales are down 25% after the weeks of wet weather in the UK. Attempts to raise its prices had been “met with resistance” by some customers and a further loss in sales, Hill Station admitted.
“Competitors are in the same position and the Directors believe that there will be an across the board price increase over coming months,” Hill Station said. “However, the squeeze in margins can only lead to a further cash drain.”
The company insists it has a viable future if it can “overcome its current funding needs and can grow by acquisition”.
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