18 March 2019 – update re bank covenant and dividend
The company has managed to secure a waiver of its latest covenant tests due on 31 March and, in order to provide greater financial flexibility, it has also cancelled its interim dividend of 0.6p per share due to be paid on 4 April. This is clearly a sensible move and it appears that talks with the bank have gone well providing some confidence that trading at the group will improve. At this stage we maintain our recommendation of HOLD.