Specialist building products group Marshalls (MSLH) fell 2.9% to 631p as it announced plans to shore up its balance sheet to get it through the coronavirus crisis.
The fact lenders have been willing to stump up the necessary liquidity is encouraging and reflects their faith in the longer term prospects of the business.
Focused on landscaping products like bollards and paving slabs, the company has a strong track record and has positioned itself to benefit from areas which were spending priorities (at least prior to the coronavirus) in housebuilding and transport infrastructure.
The company said it was poised to source an additional £90m of debt funding from its banking syndicate.
The company said lenders NatWest, Lloyds and HSBC had confirmed their full support for an additional £30m, 12-month revolving credit facility each.
‘The discussions held have been positive and, subject to the finalisation of documentation, are now well advanced,’ Marshalls said.
‘We anticipate the documentation process to be completed by the end of April.’
‘These additional facilities comprise £90m in total and will strengthen the group’s headroom as we continue to manage the current situation.’
Marshalls said it had temporarily ceased certain operations across its manufacturing network and that it was deferring non-essential capital expenditure.
Its board has agreed to take an immediate 20% pay cut for the duration of the crisis and dividends have already been put on hold.
