Bilby PLC Year-end and COVID-19 trading update (7227K)
24 April 2020 - 4:00PM
UK Regulatory
TIDMBILB
RNS Number : 7227K
Bilby PLC
24 April 2020
24 April 2020
Bilby plc
("Bilby" or the "Company")
Year-end and COVID-19 trading update
Bilby Plc (AIM: BILB), a leading gas heating, electrical and
building services provider, provides the following update.
Year-end update
The Group anticipates announcing its results for the year-end 31
March 2020 in July 2020. It is pleased to report that results are
expected to be in line with previous guidance of at least
maintaining revenues of GBP59 million with an underlying EBITDA of
not less than GBP4.5 million, and with a net debt position at the
year-end of GBP 7.4 million (2019: GBP10.9 million).
Supporting our employees and customers
Bilby's core services provide its local authority and housing
association customers with vital services including emergency
repair and maintenance cover, whilst also ensuring that customers
remain compliant with gas, electricity and building maintenance
regulations. As a result, the Government recognises many of our
employees as key workers and it is deemed crucial that they
continue to perform their essential services. In addition to the
critical and necessary work that our employees continue to
undertake, they are also providing vital voluntary services to our
customers, assisting and supporting the wider community during
these unprecedented times.
The outbreak of COVID-19, as with many businesses, has presented
challenges for Bilby and how it operates, but our absolute priority
will always be the safety of our employees and customers. We have
implemented a range of measures to ensure the well-being of
colleagues while minimising the risk of spreading the virus and we
remain focused on serving our customers in a wholly safe
manner.
Given the nature of Government restrictions imposed as a result
of COVID-19, the Group is experiencing delays in accessing certain
residential and communal properties to undertake work. Furthermore,
while the UK remains subject to travel and social distancing
restrictions, some local authority customers are choosing to defer
certain elements of work that are deemed of a lower priority.
However, over 95% of Group revenue is generated through contracts
with local authorities and housing associations, providing an
assurance of continuity moving forward as well as minimal debtor
risk. Whilst the short-term outlook remains uncertain, the Group is
confident of completing these deferred works when conditions return
to normal and our longer-term prospects remain very positive.
Mitigating Actions
The positive momentum during the second half of the year has
demonstrated the underlying cash generation abilities of the Group
and has served to significantly increase headroom against our
facilities at the year end. In light of the current challenging
environment, the Company is maintaining a rigorous focus on cash
conservation and cost management. This process has been helped as a
result of the Company's recent investment in enhanced reporting
controls and aligning accounting and performance management
procedures. To further reduce the Group's exposure to COVID-19, we
have put in place a range of initiatives including work from home,
alternate shift patterns and implementing the Government's measures
relating to workforce protection through the furlough scheme as
well as taking advantage of VAT and NI/PAYE deferment. The Board
and senior management have also taken a 40% reduction in salary and
remuneration to provide further support to the Group's cost
management objectives.
Balance sheet update
In the year to 31 March 2020, and as part of the strategic
review, the business took significant steps to strengthen its
balance sheet including raising GBP2 million of new equity. In
addition, the Group focused on reducing the stretch in its trade
creditors. Collectively this led to net debt dropping by 32% from
the year ending March 2019 position of GBP10.9 million to GBP7.4
million at the period end March 2020, compared to overall
facilities of GBP10.4 million. In November 2019, the Company
received approval from its banking partner HSBC to make amendments
to its financial covenants up to June 2020, which provided
additional time and flexibility for the Group to enter into new
debt facilities with rebased financial covenants. These discussions
have progressed well. At the year-end, the Company maintained
comfortable covenant headroom on its banking facilities. However,
in light of the current COVID-19 lockdown, the Board felt it
prudent to review future trading scenarios and their impact on
covenants with HSBC, to ensure that the new agreement reflects the
interim disruption that COVID-19 will have on the business and its
outlook. HSBC remains supportive and the Group will update the
market once a new agreement has been confirmed. A new agreement is
expected to provide Bilby with sufficient liquidity and financial
stability both during and after the COVID-19 outbreak.
Guidance
The Board has concluded that, while positive progress is being
made on the actions above, the level of uncertainty created by the
Covid-19 pandemic is such that it is difficult to provide guidance
on the financial performance for the current year until a clearer
outlook emerges. The situation is evolving rapidly. We will provide
further updates to the market as the situation evolves.
Commenting on the results, David Bullen, Chief Executive of
Bilby plc said:
"I am immensely proud of and grateful to the Bilby workforce.
They have undertaken their vital work in a very responsible manner
and have continued to ensure our customers receive the highest
standard of service in extremely challenging circumstances.
The Group has finished the year strongly and we have been
implementing all the necessary actions to mitigate our risks which
has positioned us well to overcome the short-term issues created by
COVID-19. In addition, we are having constructive and helpful
discussions with our lenders, who remain committed to agreeing new
facilities with rebased covenants, reflecting our solid
relationship with them and would like to thank them for their
continued support.
As a result of the swift actions taken, I am confident that the
Group is well placed to deal with the unprecedented challenges of
the current times and that the Group will emerge even stronger as a
result."
Enquiries
Bilby plc
Sangita Shah, Chairman +44 (0)20 7796 4133
David Bullen, Chief Executive Officer (via Hudson Sandler)
Canaccord Genuity Limited (Nominated Adviser
and Sole Broker) +44 (0)20 7523 8000
Corporate Broking:
Bobbie Hilliam
Andrew Potts
Georgina McCooke
Sales:
Jonathan Barr
Hudson Sandler (Financial PR) +44 (0)20 7796 4133
Charlie Jack
Bertie Berger
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTKXLFLBZLZBBQ
(END) Dow Jones Newswires
April 24, 2020 02:00 ET (06:00 GMT)
Kinovo (LSE:KINO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kinovo (LSE:KINO)
Historical Stock Chart
From Apr 2023 to Apr 2024