Laura Ashley shares soar despite denial of takeover reports

Shares in Laura Ashley soared more than 20 per cent this morning after the retailer dismissed reports that that entrepreneur Michael Flacks could be weighing up a bid for the embattled firm.

Shares were up 23 per cent to 3.99p this morning, despite Laura Ashley chairman Andrew Khoo’s insistence that the textile design company has not been approached with an offer.

Read more: Laura Ashley tells investors that it has not received a takeover bid

Flacks, a Manchester-born businessman, was reportedly set to approach the group’s Malaysian controlling shareholders about taking the company private, the Sunday Telegraph said.

“As far as I am concerned, there is no takeover bid because there has been no approach whatsoever. If and when an approach is made, the board will discharge its duties as always and assess it on its relative merits," Khoo said.

Read more: Laura Ashley issues profit warning as sales slide

“Whilst I understand why potential parties would think we are significantly undervalued, I have complete confidence that we will be able to grow profitably and in a sustainable manner so as to create long-term value for our shareholders."

The news comes a week after the retailer reported a £1.5m half-year loss amid “difficult” trading conditions, with a slump in its furniture, bed and mirror sales.