Safestyle to raise £8.5m to safeguard trading
The Bradford-based firm said the cash will strengthen its balance sheet so that the business is well capitalised and has a strong cash buffer to ensure it can continue trading.
A proposed conditional placing to raise £8.5m at a price of 17p per share with institutional and other investors (including all of the directors), will be launched this evening.
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Hide AdThe firm’s banking covenants will be waived for up to six months following completion of the placing, to apply for the entire shutdown period, and a reduced EBITDA covenant target will be in place for the rest of the year following resumption of trading.
Two weeks ago, the group said it was temporarily closing all of its locations across the country following the coronavirus outbreak.
The firm said that in light of the current situation and recent Government guidance, it has also temporarily ceased all installation activities.
The group said the decision has been made in the interests of all its key stakeholders, in particular its colleagues, customers, shareholders and the nation as a whole. Some firms have been criticised for forcing employees to work despite the Government’s attempts to limit the outbreak.
Safestyle warned the decision to temporarily halt normal activity could have a material impact on the group’s trading this year.