Business
Access to CCFF granted and further COVID-19 Update
Access to CCFF granted and further COVID-19 Update.
About this update from Sthree Plc
[{"type":"text","content":"\n \n\n\nSThree (STEM)\n\n\n\nSThree: Access to CCFF granted and further COVID-19 Update20-May-2020 / 07:00 GMT/BSTDissemination of a Regulatory Announcement, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.\n\n\n20 May 2020\n\n \n\nSThree plc\n\n \n\nAccess to CCFF granted and further COVID-19 Update\n\n \n\nSThree plc (\"SThree\" or the \"Group\"), the leading global pure-play specialist staffing business focused on roles in Science, Technology, Engineering and Mathematics ('STEM'), today issues an update on its financial position and operations.\n\n \n\nStrong financial position with access to significant liquidity\n\n \n\nThe Group is pleased to announce it has received confirmation that it is eligible to access up to £300 million of funding under the Bank of England's Covid Corporate Financing Facility (CCFF) to further strengthen its financial position. Of this, the Board has agreed, in consultation with its existing RCF lenders, that the CCFF facility will be capped at £50 million.\n\n \n\nThis facility is designed to support liquidity among larger firms that make a material contribution to the UK economy and can demonstrate they were in sound financial health prior to the economic impact of the COVID-19 pandemic.\n\n \n\nAs detailed in our business and trading update of 6th April, SThree continues to benefit from a strong financial position. As at 18 May 2020 the Group has total accessible liquidity of £129.4 million. This is made up of £24.4 million net cash, a £50 million revolving credit facility (\"RCF\"), which has now been fully drawn down, a £5.0 million overdraft and £50 million from the CCFF (both not yet drawn down). In addition, SThree has a £20 million accordion facility as well as a substantial working capital position reflecting net cash due to SThree for placements already undertaken.\n\n \n\nOperating environment \n\n \n\nDemand in the short term, impacted by global government responses to the pandemic\n\n \n\nWe are in the midst of a health crisis and whilst governments across the world are taking their next steps in response to the pandemic, uncertainty persists. The resultant economic environment has meant the majority of companies have been focuse...