(Alliance News) - Joules Ltd said Tuesday it has successfully added GBP15 million to its revolving credit facility from Barclays Bank.
Shares in the clothing and homeware retailer closed 25% higher in London on Tuesday at 94.00 pence each.
This, added to its recently completed GBP15 million placing, "significantly" strengthens the company's balance sheet, Joules said.
The retailer said the two moves gives it sufficient liquidity headroom to withstand the Covid-19 pandemic, and even come through "relatively stronger".
On Sunday, Joules' net debt stood at GBP6.9 million while it had GBP43.1 million of available headroom.
"The completion of the additional facility with Barclays Bank provides Joules with further liquidity to navigate these challenging times and positions the business to continue to progress its strategic growth plans following the current period of significant disruption," Chief Executive Nick Jones said.
Joules also noted its e-commerce channel - which accounts for about half its revenue - remains operational.
The company continued: "Customer demand is being managed carefully to ensure that the group's distribution centre partner is operating safely and in strict accordance with government and health authority guidance at all times, including ensuring robust physical distancing and hygiene procedures."
Customer traffic and demand is ahead of revised internal expectations, the company said.
Jones added: "Our e-commerce sales over recent weeks continue to demonstrate the strength of the Joules brand and the loyalty of our customer base. We know that further challenging times are ahead, but we are confident that, with the continued support of our colleagues, customers and the wider Joules community of suppliers and partners, Joules is well positioned to manage these challenges."
By Paul McGowan; paulmcgowan@alliancenews.com
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