StockMarketWire.com - Recruitment and training group Staffline said it was in talks with its lenders to revise terms to mitigate against the risk of any covenant breaches.

The company said Covid-19 was having a mixed impact on its business, with demand for recruitment rising in the food sector, but falling in the travel, retail and manufacturing sectors.

Staffline said that a UK government move to allow companies to defer value-added tax (VAT) payments had provided it with a liquidity improvement.

'The company remains in regular and constructive dialogue with its lending banks who remain supportive in these unprecedented times,' Staffline said.

'The board expects to reach agreement with its lending banks on revised terms that will mitigate the risk of any potential covenant issues.'

Staffline said it was too early to asses the impact of the Covid-19 pandemic on trading for the current year. 'While the implications of the Covid-19 pandemic are difficult to determine, the board is confident in the long-term structural growth drivers of the markets in which the business operates,' it said.


At 9:10am: [LON:STAF] Staffline Group PLC share price was +4.78p at 21.28p



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