Carclo refinances with new loans as revenues fall

Carclo has agreed to new funding arrangements with HSBC, securing a loan of £34.5m and a revolving credit facility of £3.5m.

In parallel to this, the group reached agreement with the Trustees of the Pension Scheme in respect of both the actuarial deficit and the resultant deficit repair contributions to be made over the next three years; £2.8m (2021), £3.9m (2022) and £3.8m (2023).

The Leeds-based restructuring team at Addleshaw Goddard advised Carclo on the work.

In anticipation of a material reduction in activity in both businesses during the first quarter, the group implemented a number of operating and commercial initiatives aimed at preserving operational continuity as well as matching cost to reduced demand.

Carclo has also been able to access Covid-19 relief schemes, particularly in relation to job retention programmes, in a number of its territories including for the UK and US operations.

A spokesperson said: "In light of the ongoing uncertainty presented by the pandemic, as well as any wider resultant economic impacts, the Board does not believe that it is possible to provide detailed guidance for the year ending 31 March 2021 at this time.

"Activity levels in July were broadly in line with those seen in the first quarter and the Board remains cautious about market conditions in the near term. The Group will continue to take action to reduce its cost base, where appropriate, to mitigate the effect of any reduction in demand, whilst seeking to preserve the capability and capacity to respond positively as conditions improve."