From RNS6 Aug 2025 20:08
The June 2025 LTM EBITDA covenant was met and all weekly minimum liquidity covenant tests have also been met. The share placing requirement was achieved on 30 April 2025 with a £8.0 million gross placing realising £7.5 million of net proceeds.
As part of the Amended Covenants, existing RCF lenders have a right to exert more influence over the Group, including in the extreme, triggering an event of default and enforcing security over the business, should the Group fail to complete a refinance or reach agreement with all of its lenders on an alternative deleveraging plan by October 2025.
The Group has been actively seeking to fully or partially refinance its RCF since April 2025. This has involved a coordinated outreach, with the help of advisors, to a number of financial institutions who have received vendor due diligence material and management presentations. Despite the level of effort undertaken, progress has been hampered by difficult market conditions and general economic uncertainty, not least with the evolving US tariff situation. Indicative terms received from potential lenders have not met the requirements of the business, nor its lenders, and the likelihood of achieving a full or partial refinancing of the RCF prior to the October 2025 deadline has a low probability.
Accordingly, the business is in discussions with lenders on potential options including alternative ways of deleveraging, amendments to existing covenants and future obligations.
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