Time to restock and take note as to what the f*ck is happening here!
The share price has been decimated from 95p in October 2016 down to 46p today but has the market finally been appeased?
If you follow my posts on LSE then you will know I said last time I didn't expect a new repayment date beyond 31 March even though I secretly hoped it would be to tie in with the relaxed covenants.
So while it's disappointing they could only extend four weeks, we have however raised more from the loan note than we announced we were going to previously!
The £3.0m of short-term borrowings due under the RCF was to be paid by 31 January 2017 so presumably they have been hammering out an agreement since then and two weeks late here are the amended terms. The fear driving HAYT lower was a breakdown in communication which might lead to something altogether less desirable. But that's not what today's update reveals.
We have raised £0.6m (£0.4m was mentioned last time) which leaves a potential £0.3m worth of loan notes we can further draw upon. Hopefully we don't have to from now on!
Together with the £2.1m cash at hand mentioned in a company update from mid December, it places us a whisker away from the £3m total due in two weeks time. Cash-flow must have been tight and this is a concern I think the market has been and will now continue to be aware of. The questions of tight cash-flow / generation may prevail until final results are released and we can get a better understanding of how the company has performed.
But I expect this will be share price bottom given the imminent repayment of the £2.4m loan. Next week if they hope to get it in prior to week following (27th-28th).
13 February 2017
Successful completion of note raise
Hayward Tyler Group plc ("HTG", the "Company" or "Group"), the specialist engineering Group, comprising the operating companies of Hayward Tyler and Peter Brotherhood, is pleased to announce the successful completion of its latest loan note issue at £0.6m. The loan notes carry a 1-year term and pay interest at 6.75%. Proceeds of this issue will be used to reduce the Company's revolving credit facility ("RCF") with Royal Bank of Scotland ("RBS") by £0.6m.
The Group continues to have a supportive relationship with RBS, which has now agreed to extend the repayment date of the remaining of the £2.4m short term borrowings under the RCF to 28 February 2017.
Further updates regarding the repayment of the £2.4m short term borrowings will be made in due course.