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Snoozebox Holdings PLC  -  ZZZ   

Amendment to debt servicing obligations

Released 11:32 11-Nov-2016

RNS Number : 9909O
Snoozebox Holdings PLC
11 November 2016
 

11 November 2016

Snoozebox Holdings plc

Amendment to debt servicing obligations

The Board of Snoozebox Holdings plc ("Snoozebox" or the "Group") (AIM:ZZZ) provides the following positive update on discussions held with its primary lender.

As previously announced, the Group initiated discussions with its primary lender in the first half of 2016 seeking an amendment to its debt servicing obligations.   The Board is pleased to report that the following amendments have been agreed, effective as of today:

·     The cash balance held by the Group in a 'restricted cash' bank account, equal to £1.3m at the date of the amendment (£1.3m at 31 December 2015 and 30 June 2016), will be transferred to the primary lender and applied against the outstanding capital balance, reducing the gross outstanding capital balance as at the date of this announcement to £7.6m;

·     Debt servicing payments for each of the next three quarters (January 2017, April 2017 and July 2017) have been reduced to interest only, resulting in quarterly payments due of £0.18m per quarter.  The total now payable over the next three quarters of £0.54m compares to £1.4m of capital and interest debt servicing payments that was due for these three quarters prior to today's amendment; and

·     Subsequent debt servicing quarterly payments commencing October 2017 will comprise interest and capital resulting in quarterly payments due of £0.5m per quarter, giving a total interest and capital debt servicing payment of £2.0m per annum, a level consistent with the £2.0m due per annum prior to today's amendment.

Debt servicing payments remain due in January, April, July and October each year, with the overall repayment term unchanged and a final quarterly payment due in April 2022.

At the date of this announcement and after the application of the above amendment, the Group's cash balance will be approximately £2.6m and £nil restricted cash (30 June 2016: £4.1m and £1.3m restricted cash); and the Group's net debt will be approximately £4.6m (30 June 2016: net debt £3.2m).

Following the agreement to revise the Group's debt servicing obligations, the Board continues to have a reasonable expectation that the Group has adequate resources to continue operationally for at least the next 12 months. The Group continues to maintain an open dialogue with its primary lender, who remains supportive of the Board's strategy and plans. 

Chris Errington, Executive Chairman, commented:

"This amendment, together with the cost reductions we have made that will take full effect in 2017, significantly reduces the cash outflow profile for 2017, consistent with the Board's business objective of establishing a more stable operating environment and improved financial stability.   We continue with our work to secure customer opportunities for delivery in 2017."

The information contained within this announcement constitutes inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.

Enquiries:

Panmure Gordon

020 7886 2500

Corporate Finance:
Andrew Godber
Duncan Monteith

 


Corporate Broking:
Charles Leigh-Pemberton

 


 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Amendment to debt servicing obligations - RNS