Business
COVID-19 update
COVID-19 update.
About this update from Midwich Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 9465H\n Midwich Group PLC\n 30 March 2020\n \n \n \n \n 30 March 2020\n \n \n \n \n \n Midwich Group plc\n \n \n (\"Midwich\", the \"Company\" or the \"Group\")\n \n \n \n \n \n COVID-19 update\n \n \n \n \n \n Midwich, a specialist audio visual distributor to the trade market, today provides an update in light of the constantly evolving COVID-19 situation.\n \n \n \n \n \n Throughout this crisis we have prioritised protecting the health and wellbeing of our team, utilising particularly our remote working capabilities.\n \n \n \n \n \n The situation in respect of COVID-19 continues to evolve rapidly across the countries in which the Group operates. The extent to which our business is currently affected varies by country, but we have taken actions across the Group to preserve cash and liquidity. Measures undertaken include the temporary suspension of acquisition activities and capital expenditure together with tighter controls on working capital and overheads. To further preserve cash, the Board has taken the decision to withdraw its intention to propose a final dividend for 2019. \n \n \n \n \n \n Balance sheet and liquidity\n \n \n In January 2020, the Group signed a new three year £50 million revolving credit facility which has unutilised capacity of £37.8 million. This facility also includes a £30 million accordion option and can be extended by a further two years, both at the bank's discretion. In February 2020, the Group successfully completed an equity fundraising of £39.7m, of which £21m was used in connection with the acquisition of Starin Marketing, Inc. The Group also has numerous working capital facilities (totalling over £100 million) which provide further funding flexibility to our businesses. At 31 December 2019, the Group had closing adjusted net debt/adjusted EBITDA of 1.4x. The Board believes that this balance sheet strength, together with a strong and supportive relationship with our banking partners, means that the Group is well placed to deal with current uncertainties. \n \n \n \n \n \n The Board notes that, although our end user markets have been adversely affected by the COVID-19 situation to varying degrees, the Group continues to supply solutions into critical end user markets and also to facilitate remote working and communication. In...