- Hostel group Safestay said it had secured a £5m overdraft extension from HSBC to bolster its balance sheet during the Covid-19 crisis.

The facility would be added to the company's cash reserves of £1.1m as at 8 April, helping it meet 'significantly reduced' liquidity requirements while lockdowns remained in place.

All of the company's hostels had been closed since 1 April and the majority of its staff furloughed, receiving financial support from the governments in their respective countries.

'Operational costs associated with the running of the individual sites and our head office have been greatly reduced,' Safestay said.

'Individual agreements have been reached with landlords involving a mix of suspension of rents or rent reductions for a limited period.'

'As a result, the monthly cost base of the group has been significantly lowered to approximately £0.6 million of which half relates to payments which can be temporarily deferred.'

At 1:24pm: [LON:SSTY] Safestay Plc share price was +2p at 17.5p

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