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... the share price takes another leg down... now at 2.5p to sell.
Inevitable it seems.
Market's not finished reacting negatively to those full year results published 2 days ago - 2.3p to sell this morning - suspect people are spooked by this, tucked away in the outlook section:
"The Directors also draw attention to the Group's senior debt arrangements with Bank of Ireland, where £6.8 million was outstanding at 31 December 2022 (c.£6.0 million following a repayment in June 2023) of an original principal of £17 million borrowed in 2018. This debt facility comes around for repayment, extension or refinancing in September 2023, and while the Directors are confident in the Group's ability to do so, this is nevertheless a project that needs to be successfully executed".
That looks like fair warning of a capital raise to me.
I disagree with that assessment. I think it's more to do with the fact that they can't not comment on it- and as a result they have therefore commented on it.
Turnover Q1 £6.5m don't forget. Run rate of 26m per annum which is 10m more than full year 2022. They should easily be able to cover the repayments and interest given a lot of expenditure is non cash.
I hear you disco, but they don't need to comment on it. They could've correctly notified the debt position in the accounts and left it at that rather than also highlighting it in the narrative. Seems like a warning to me. Hope I'm wrong.
The results here are very old now and almost another 6 months has passed by since....
The market knew what the results were likely to be..no surprises there
They have a good relationship with their lenders and seem to be following the requirements of the loan and keeping within covenants ....and it seems likely they will aim to pay another part of the loan back during H2 from the increased revenue received
Seems likely that if indeed they achieve what has been required of them with regards to their loan facility, the lender will extend the situation for at least another 12 months but continue to maintain covenant requirements
It is normal that a loan review isn't fully settled until closer to the date i.e. September...so it isn't exactly unusual that it has not been finalised just yet...
Doesn't seem too much of a warning to me ...in the sense that it is a process that is merely following a timetabled schedule with the BOD not highlighting anything that may cause an issue in achieving the process...
As they cannot predict the lender´s final decision at the point of the review decision they have to add the idea that is might be recalled.... but there isn't anything to suggest that at this moment in time