Findel mulls cash call

22nd May 2009 10:59

Home shopping and educational supplies group Findel has given back all its gains of the past few weeks after admitting it's considering an equity issue.It also warned that the firm's underlying financial performance for the financial year to 3 April 2009 was at the lower end of expectations.Findel has been talking with lenders about putting some of its debt facilities onto a longer term and committed basis, but it's emerged that revisions to the terms of its revolving credit facilities will be needed.It admitted the board has discussed a possible fundraising to accompany any revision to its debt facilities and gained backing from chairman Keith Chapman and its largest shareholder.Last month, Findel shut down its furniture brand Cotswold Company and toy business Letterbox, resulting in impairment charges of £9m and £8.6m.Full year figures will be delayed as a result."The group remains focused on its previously announced cash generation and debt reduction programme and continues to review the group's operating structure, including the potential disposal of certain non-core assets," read a statement.