Business
Update
Update.
About this update from Synthomer Plc
[{"type":"text","content":"\n RNS Number : 7991K Yule Catto & Co PLC 29 December 2008 \n \n\n29 December 2008\n\nYule Catto & Co plc\n\nUpdate\n\nYule Catto & Co plc ('the Group') is pleased to announce that it has signed a new three year £30 million revolving loan facility with its principal banks, HSBC and Barclays. This loan replaces its existing revolving bank loan facility maturing in November 2009.\n\nDuring the course of this re-financing, the Board has been carefully considering the capital structure \nof the Group. Whilst much progress has been made on the deleveraging of the balance sheet, with \n£55 million of gross proceeds received from the sale of three of our five Impact Chemicals businesses, the balance sheet remains a core focus of the Board and it aims to reduce outstanding \nnet debt to below £100 million over the next twelve to twenty four months. The Board believes this is consistent with the Group's objectives, including its financial commitments to the Group's UK pension fund.\n\nAccordingly, and in light of the current financial environment and economic uncertainty, the Board has additionally decided to suspend the payment of dividends until such time as net debt is nearer to its overall target and at which time the business environment and financial market conditions may well have improved. The Board anticipates reverting to the payment of a dividend within two years.\n\nAt the time the Group recommences the payment of a dividend, the Board anticipates rebasing it to a level determined by comparison with its peer group and which will allow an appropriate free cash flow to suit the Group's circumstances.\n\nThe Board is also pleased to confirm that for 2008 the Group still expects to deliver underlying earnings before tax modestly ahead of last year, despite the current difficult economic conditions particularly in the UK and Continental Europe.\n\nThe Board believes it is too early at this time, given the prevailing economic uncertainty, to offer any ...