StockMarketWire.com - Recruitment and training group Staffline said it had pledged not to pay any dividends until July 2022 as part of a refinancing of its debt facilities.

The new financing arrangements included a reduction in the size of a revolving credit facility to £30m, down from £78.2m, and removal of a £25m overdraft.

A new receivables finance facility worth £73.2m had been added, with all debt having an expiry date of 4 July, 2022.

Interest on the receivables finance facility would accrue at 3.50% plus the Bank of England base rate.

The arrangements also included a revised covenant package, which the company said was more appropriate for its current trading levels.

'We are pleased to have secured the refinancing of Staffline and wish to thank our lenders for their ongoing support,' chief executive Ian Lawson said.

'The group has a solid liquidity position through to March 2021 and this refinancing provides us with the platform to focus on our turnaround plan which includes margin improvement measures, cost reduction initiatives and working capital improvements.'


At 8:00am: [LON:STAF] Staffline Group PLC share price was +3.76p at 40.03p



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