Elementis PLC extends borrowings leeway as trading remains uncertain
Net debt at the half-year was US$453mln, but Elementis said today that number was expected to reduce significantly over the second half of 2020
(), the speciality chemicals group, has agreed a further relaxation of the covenants on its debts with its lenders.
The FTSE All Share-listed group’s lenders had already agreed to loosen the covenant surrounding debt and underlying earnings due to the impact of the coronavirus (COVID-19) pandemic on its first quarter.
This extra leeway has now been extended to the next testing points of June 30 and December 31, 2020.
In a brief statement, Elementis also noted that trading across the group trading in July and August was consistent with the update that accompanied its half-year results at the end of July.
At that time, the chemicals group reported interim revenues had fallen by 14% and it posted a statutory loss of US$51mln after impairment charges while adding that trading remained uncertain in many areas.
Net debt at the half-year was US$453mln, but Elementis said today that number was expected to reduce significantly over the second half of 2020.
A third-quarter trading update is scheduled for October 28, 2020, it added.
Read More: Elementis PLC extends borrowings leeway as trading remains uncertain