rns (extract)16 Apr 2013 09:49
Agreement re Banking Facilities and Trading Update
New Banking Facilities
The Board of Green Compliance is pleased to announce that further to the announcement made on 10 January 2013, it has entered into new facilities and associated covenants with HSBC in respect of a revolving credit facility of GBP9.0 million (the "RCF").
The RCF, which has a margin of 4% over LIBOR and which runs until 31 December 2013, will replace the revolving credit facility and overdraft which the Company had in place and completes the re-financing of the Company following the January equity placing.
Trading update
The Board is also pleased to report that trading in the quarter to 31 March 2013 has been encouraging with sales growth month on month in each of the first 3 months of 2013. Revenue was 5% greater in the quarter to 31 March 2013 than in the quarter to 31 December 2012. In addition the month of March was the highest sales and cash collections month for the Company since October 2012.
Several customers have renewed contracts in the period and there have been some further significant examples of multiple buying across divisions by Green Compliance customers.
The Board has also continued to focus on efficiency and whilst the full impact will not be felt until later periods the Company has reduced costs by £1m on an annualised basis in the quarter to 31 March 2013.
Commenting, Bob Holt, Chairman, said:
"I am very pleased that we have concluded discussions with HSBC in agreeing the new facilities.
Whilst these are still early days I am also encouraged by the fact that trading in the business has picked up in the early months of this year.
Everyone is focused on continuing to deliver profitable revenue growth across the integrated business and I am very impressed with the motivation and effort of the people in the Company and the forward momentum that has been created in the last three months."