Further to the information provided in the Trading Update announced on 19 March 2018 and following constructive discussions with its lender, Accrol announces that a number of matters regarding the Group's borrowing facilities have been agreed as outlined below:
· EBITDA covenants tests in respect of the periods ended 30 April 2018 and ending 31 July 2018 have been waived;
· the scheduled reduction in the limit of the Revolving Credit Facility which was due to occur on 30 April 2018 has been deferred until 31 October 2018; and
· indicative terms have been established for the lease funding of the new conversion line being installed at the Leyland plant in the next three months, which will allow the business to service major new business wins.
These revised banking arrangements, which are subject to the Company complying with certain undertakings to the lender during May 2018 (with which the Board expects to be able to comply) will help to support the growth of the business and enable the new management team to pursue the business recovery plan.
Operational Update
The Group is pleased to announce that it has recently entered heads of terms on the exit from the onerous central distribution hub in Skelmersdale. This planned exit is expected to have a positive impact on annualised profits, as previously reported, of at least £5 million.
Current Trading
The Company continues to trade in line with current market expectations.