Business
Market Update
Market Update.
About this update from Gooch & Housego Plc
[{"type":"text","content":"\n RNS Number : 5041O Gooch & Housego PLC 09 March 2009 \n \n\n\n\n\nFor immediate release \n\n\n9 March 2009\n\n\n\n\n\n\nGooch & Housego PLC\n(The 'Company')\n\nMarket Update\n\nGooch & Housego PLC, the specialist manufacturer of optical components and systems, today announces that it has completed discussions with its bankers, finalised and published its accounts for the year ended 30 September 2008, set a date for its AGM and introduced a number of cost saving measures.\n\nBank Facilities and Dividend\n\nAs reported in the Trading Update issued on 29 January 2009, the Company has been in discussions with its bankers, The Royal Bank of Scotland plc ('the Bank'), concerning the impact of the fall in the value of Sterling against the US Dollar and how this affects certain bank covenant calculations. These discussions have been completed with the result that the Bank has provided a $10 million, three year committed working capital facility in place of the previous one year facility, clarified the definition and calculation of certain loan facility covenants and amended the ratios to reduce the impact of foreign exchange rates and provide additional headroom in the current economic climate.\n\nAs part of the discussions with the Bank, the Board has decided that it is prudent to cancel the proposed dividend of 3.0p per share in respect of the year ended 30 September 2008 to conserve cash within the business. \n\nAccounts for year ended 30 September 2008\n\nHaving concluded its discussions with the Bank, the Company has finalised and published its accounts for the year ended 30 September 2008. The Annual General Meeting will be held on 31 March 2009.\n\nCost Savings\n\nIn response to the trading conditions announced on 29 January 2009 the Company has implemented a range of cost saving measures that include redundancies, reduced working hours and salary sacrifices, the net effect of which is approximately equivalent to a 17% headcount reducti...