Havelock Europa PLC (HVE.L), the international interior solutions provider, is pleased to announce an agreement in principle to secure additional funding for the Company. The Company also provides an update on trading in respect of the year ended 31 December 2017.
Havelock has reached agreement in principle on a package of proposals including (i) an extension of existing senior debt facilities of £5 million for a committed term of two years, (ii) additional subordinated debt financing of £3 million for a committed term of six years and (iii) revised deficit reduction contributions payable to the pension scheme.
The effect of the changes set out above, once executed, whilst in aggregate negatively impacting Havelock’s profit and loss account by approximately £0.5 million per annum for the next two years, will be to provide sufficient funding to support the delivery of the new strategic and short term operational plan announced on 31 October 2017.
A further announcement will be made as soon as the related agreements are executed.
Although the Company’s performance in the second half of 2017 represented a substantial improvement over the first half, it is expected that the Company will continue to have been loss-making in that period.
The Board expects to announce the Company’s preliminary results for the financial year ended 31 December 2017 by mid-April 2018.
Shaun Ormrod, Chief Executive said: “2017 was a difficult year for Havelock but we have begun 2018 with the business fully aligned behind the new plan we set out on 31 October 2017. With a renewed commercial focus and with the backing of our funders, I am confident that the business can return to a position of market leadership in the medium term.”
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