Bilby PLC New Banking Facilities (9140N)

TIDMBILB

RNS Number : 9140N

Bilby PLC

26 May 2020

26 May 2020

Bilby plc

("Bilby" or the "Company")

New Banking Facilities

Bilby Plc (AIM: BILB), a leading gas heating, electrical and building services provider is pleased to announce that it has secured new banking facilities. The new facilities reflect the Company's much improved financial position and the continued support from its debt providers.

As previously announced, in the year to 31 March 2020, and as part of the strategic review, the business took significant steps to strengthen its balance sheet which, together with strong cash generation from operating activities, led to net debt dropping by 32% from the year ending 31 March 2019 position of GBP10.9 million to GBP7.4 million at 31 March 2020. The net debt position has improved further post year end to GBP5.7 million on 1 May 2020, comprising of overdraft of GBP1.8 million, term loan of GBP3.3 million and other borrowings of GBP0.6 million.

The Company received approval from its banking partner, HSBC, in November 2019 to make amendments to its financial covenants up to June 2020, which provided additional time and flexibility for the Group to enter into new debt facilities with rebased financial covenants.

The Board is pleased to have now reached an agreement on the new debt facilities. The new debt facilities total GBP9.8 million. The Group's previous debt facility was in the form of a GBP3.3 million term loan and a GBP6.5m overdraft facility (of which GBP1.8 million was utilised as of 1 May 2020). This debt facility has been restructured and now represents a GBP7.3 million term loan facility and a GBP2.5 million overdraft facility. The Group has prudently fully drawn down on this increased additional term loan facility to increase cash balances by GBP4.0 million. The facility expires in September 2022 and there will be GBP0.5 million quarterly repayments starting in August 2020.

In addition, Bilby has agreed with HSBC that the first covenant test for the Company will be to achieve a minimum EBITDA of GBP1.1 million for the year ending 31 March 2021, meeting the mandatory requirement for a covenant to be in place against the facilities. The covenants for the period beyond 31 March 2021 will be tested quarterly and they are (i) achievement of minimum levels of EBITDA; (ii) debt service cover; and (iii) interest cover.

The new facility and changes to the covenants provide maximum flexibility for the Group, which continues to benefit from long term contracts and, when conditions allow, will enable Bilby to capture revenues from deferred work as a result of COVID 19.

The Group continues to intend to announce its results for the year ending 31 March 2020 in July 2020 and is expected, subject to audit, to report revenues in the region of GBP65 million and an underlying EBITDA of approximately GBP4.6 million.

David Bullen, CEO of Bilby, commented:

"We appreciate the continued support of our long-term partner, HSBC with whom we retain a strong relationship. The restructuring of our facilities underpins the Group's business plan, and provides us with the confidence to both navigate the challenges that COVID 19 presents and ensure that the business is fully funded to achieve long term, sustainable growth."

Enquiries

 
 Bilby plc 
 Sangita Shah, Chairman                          [phone] 
  David Bullen, Chief Executive Officer           (via Hudson Sandler) 
 
 Canaccord Genuity Limited (Nominated Adviser 
  and Sole Broker)                               [phone] 
 Corporate Broking: 
  Bobbie Hilliam 
  Andrew Potts 
  Georgina McCooke 
 
  Sales: 
  Jonathan Barr 
 
 Hudson Sandler (Financial PR)                   [phone] 
 Charlie Jack 
  Bertie Berger 
 

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May 26, 2020 03:06 ET (07:06 GMT)