Business
RM plc: Successful negotiation of bank covena...
RM plc: Successful negotiation of bank covena....
About this update from Rm Plc
[{"type":"text","content":"\n \n \n \n\n\t\n\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nRM plc (RM.)\n\n\n\n\n\n\nRM plc: Successful negotiation of bank covenants waiver for August 2023 29-Aug-2023 / 07:00 GMT/BST\n\n\n \n\n \n\n29 August 2023\n\n \n\n RM plc\n\nSuccessful negotiation of bank covenants waiver for August 2023\n\n \n\nRM plc, a leading international supplier of technology and resources to the education sector (LSE: RM) (“RM”, the “Company”), today provides an update on the successful renegotiation of a short-term unconditional covenant waiver with its lenders, and the ongoing discussions with its lenders to extend this covenant waiver to cover the 30 November 2023 covenant test date. \n\n \n\nAs announced in its half year results on 9 August 2023, the business operated within its existing financial covenants for the first half of 2023 but indicated that it expected to breach the facility’s LTM EBITDA covenant from the third quarter of the FY2023 financial year, albeit the Company is not expected to breach its liquidity covenant test in FY23 or FY24. The Directors therefore concluded that it remained appropriate to prepare the half-year financial statements on a going concern basis. \n\n \n\nThe Banks currently remain supportive of management, recognising the issues that the business has faced and also the steps taken through this transformation period (cost savings and restructuring) to return to previous levels of financial performance. In light of the continued headwinds and the need for the annualisation of savings to mature, the Company and the Banks entered into discussions to agree suitable waivers and amendments to its existing facility. \n\n \n\nRM announces that it has successfully received waivers with its lenders for its August 2023 EBITDA financial covenant and continues to comply with the conditions of each lender with regards to that waiver and the respective facility agreement. The negotiation of a suitable covenant waiver for the period ending 30 November 2023 is ongoing, and we expect to be able to announce its conclusion before the end of the current financial year. \n\n \n\nThe Company has also commenced the renegotiation of an amendment and extension of its lending facility, which matures in July 2025. The Company is working with its advisers and the Banks, and the ...