TIDMIFR
RNS Number : 9026L
IFR Capital PLC
20 January 2009
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IFR Capital PLC ("the Company")
Current trading and capital structure update
Following the Company's year end, the Company wishes to provide shareholders
with an update on both its current trading and its intentions in relation to its
current capital structure.
Current trading
Current trading continues to be in line with management's expectations. Trading
in the fourth quarter has been stable. The Company will continue with planned
cost reduction programmes into 2009, in particular in the Homann division. As
previously announced, certain exceptional restructuring costs will be recorded
in the 2008 results, arising from the integration of the operating businesses,
but will result in ongoing cost savings in the 2009 financial year.
Capital structure
The Company had EUR164 million (1H 2008: EUR167 million) of senior and subordinated
debt outstanding, together with cash balances of approximately EUR21 million (1H
2008: EUR24.7 million), as at 31 December 2008. The Company is trading within its
banking covenants.
As announced in the Company's interim results, the Company remains focused on
refinancing the EUR118 million (including accrued interest) (1H 2008: EUR107
million) of preferred equity on its balance sheet.
Under the current terms of the preferred equity, the preferential dividend rate
accruing increased to 27.5% at the end of December for part of the principal
amount (EUR48 million) and the preferential dividend rate on the balance of the
preferred equity will increase to this rate at the end of January.
The Company is seeking solutions to replace or amend the preferred instrument as
soon as possible, including a refinancing either by way of redemption or
conversion into ordinary equity or another similar instrument on acceptable
terms to the Board. A further update will be provided as appropriate.
Enquiries:
Ulrike Sucker, IFR Capital PLC +49 (0) 211 310 627 12
Mark Dickenson, Stewart Wallace, Collins Stewart Europe Limited
(Nominated Advisor to the Company) +44 (0) 20 7523 8350
This information is provided by RNS
The company news service from the London Stock Exchange
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