Sharechat Logo

Postie Plus gains extension of banking facilities, avoids breach

Thursday 6th December 2012

Text too small?

Postie Plus Group has again avoided a breach of its banking covenants and gained a 12-monthextension on its facilities.

Bank of New Zealand completed its annual review of the banking facilities," the Christchurch-based company said in a statement.

Postie Plus yesterday flagged potential breaches of its banking covenants for the months of November 2012, January and April 2013. That came after the retailer was forced to renegotiate terms of its loans with BNZ in October.

According to the company's latest annual report, Postie Plus had secured bank loans of about $9.76 million as at Aug. 5 at an average interest rate of 5.15 percent. Notes to the accounts show the company didn't meet its interest to ebit ratio covenant of 1.5 times for the rolling 12 months to April 2012 though it was in compliance with proprietorship and liquidity covenants.

Postie Plus got a waiver in May of this year but the bank at that time reserved its rights pending an expected return to compliance.

In September, the company reported an annual net loss of $183,000 including one-off restructuring costs. The normalised full-year net profit was $493,000.

The shares rose 5 percent to 21 cents. Volume was light with just 2,400 shares traded.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Pumpkin Patch today's best NX50 performer after return to profit in 2013
Postie Plus expects loss in 2013 earnings as sales fall 10.5 percent
Postie Plus appoints No 1 Shoes executive Binns as new CEO
Postie Plus 3rd-quarter sales from continuing ops fall 14 percent on stock disruptions
Postie Plus reels from outsourcing woes as 1H loss widens, burns through cash
Postie Plus warns of further potential breaches of banking covenants
Postie Plus renegotiates banking covenants because of potential breach
Postie Plus posts full-year loss on costs
Postie Plus FY sales fall 4.4% on sale of Babycity, flat Postie revenue
Postie Plus says Ron Boskill to step down after 7 years as CEO