Business
COVID-19 Update
COVID-19 Update.
About this update from Hill & Smith Plc
[{"type":"text","content":"\n \n \n RNS Number : 7931H\n Hill & Smith Hldgs PLC\n 27 March 2020\n \n \n \n \n 27 March 2020\n \n \n \n \n \n Hill & Smith Holdings PLC\n \n \n COVID-19 Update\n \n \n \n \n Hill & Smith Holdings PLC (\"Hill & Smith\" or \"the Group\"), the international group with leading positions in the supply of infrastructure products and galvanizing services to global markets, provides an update on trading and its financing and liquidity position.\n \n \n \n \n Hill & Smith has some 4,600 employees. The Board's primary focus will remain on ensuring the health and wellbeing of all employees. In providing guidance and advice to our employees, we continue to follow World Health Organisation guidelines supplemented by input from local authorities in the regions in which we operate. We continue to review and update our advice on a daily basis.\n \n \n \n \n \n Year-to-date trading \n \n \n Revenue and operating profit in the two months to 29 February 2020 was in line with the Board's expectations. Since the middle of March we have experienced disruption in the Group's French and Indian operations. In the UK, over the last 48 hours we have closed or materially reduced activity in roughly half of our operations. In the US, whilst we have seen some slowdown in demand, all businesses remain open.\n \n \n \n \n \n Financing, liquidity and dividend \n \n At 29 February 2020 the Group had £332.6m of committed facilities in place and a further £13.9m of on-demand facilities available, providing headroom of £160.6m above our net borrowings at the end of February of £185.9m. The Group's committed facilities principally comprise a c.£285m multi-currency syndicated revolving credit facility with a maturity date of January 2024, and US$70m of senior unsecured notes in two equal tranches maturing in 2026 and 2029 respectively. \n \n As at 31 December 2019, being the last covenant test date, the Group's net debt to EBITDA ratio was 1.6x on a covenant basis, compared with a covenant limit of 3.0x, while interest cover was 17.9x against a covenant of at least 4.0x. Covenants are tested twice yearly on a 12 month historic basis.\n \n The Group, and each subsidiary business, is focused on proactive cash management given the increasing level of trading uncertainty. As su...