Pittards plc (LON:PTD) has drawn down a loan and remortgaged one of its sites to top up its liquidity as warned on profits for the current year.
Demand has reduced due to the coronavirus pandemic, with sales said to be running at 45% of the previous year’s levels, meaning the speciality leather manufacturer expects a “significant loss” in its interim results.
The group said it has managed the impact on cash through strict cost control, and has secured and drawn down a £1mln loan from the Coronavirus Business Interruption Loan Scheme of £1m, with repayments over six years to 2026.
The group also agreed a re-mortgage of its Yeovil site, also through Lloyds, extending existing funding of £1.75m for five years, through to 2025.
Of its current £13.7mln facilities, roughly £2.5m is unused.
“June trading has shown signs of recovery, with positive cashflow, and this trend is continuing into July,” the AIM-listed company said.
“Efforts continue to recalibrate our cost base at this new low sales level, anticipating a slow recovery and the ending of the furlough scheme. The Board believes the Group has adequate resources to manage the likely duration of the COVID19 crisis at these reduced sales levels.”