Artisanal Sp.co Regulatory News (ART)

20 Jan 2009 13:08

Artisan (UK) plc

 ("Artisan" or the "Company")

Corporate Update

The Board of Artisan, the business park developer and housebuilder advises that, following completion of the 31 December 2008 management accounts, the Company will be in breach of its interest to profits ratio covenant. The interest to profit covenant test is currently based on the ratio of Consolidated PBIT to Consolidated Borrowing Costs not being less than 1.1:1. The Board stresses that the Company continues to be in a position to fully service its lending commitments and has sufficient funds to maintain normal trade terms. A review of carrying values on Stocks and Work in Progress and Investment Property may result in a breach of the tangible net worth covenant at 31 December 2008 if greater provisions than allowed for are required. 

The Directors of Artisan are continuing their discussions with the Company's bank to review and restructure the financial covenants currently in place. In particular the Directors of Artisan are negotiating a cash flow covenant in place of the PBIT to interest covenant which will better reflect the basis of management of Artisan to meet the current market conditions. 

Artisan (UK) plc 01480 436666

Chris Musselle

Brewin Dolphin Investment Banking 0845 213 4730

Andrew Kitchingman

Sean Wyndham-Quin

Bankside Consultants 0207 367 8888

Simon Rothschild

Louise Mason

ENDS