Tekmar extends Barclays facility as it continues strategic review

10th Oct 2022 12:34

(Sharecast News) - Tekmar Group has agreed a 12-month extension of its committed £3m Coronavirus Business Interruption Loan Scheme (CBILS) term loan facility with Barclays, it announced on Monday.

The AIM-traded firm said that extended the maturity date to 31 October 2023.

Gross cash as at 30 September totalled £8.5m, compared to £5.1m on 31 March.

Tekmar said that after a drawdown of banking facilities of £7m, net cash was £1.5m - an improvement of more than £2m since 31 March, demonstrating "strong" cash collection over the last six months.

"We are pleased to have extended the £3m CBILs facility by a further 12 months and thank Barclays for their ongoing support and look forward to building on our strong relationship going forward," said chief financial officer Derek Bulmer.

"We remain focused on improving the group's cash position and it is encouraging to see the hard work of the team reflected in the company being cash generative in the last six months."

Tekmar also updated the market on its strategic review, having launched it on 13 June in a bid to find a partner to support its opportunities for growth and provide additional balance sheet strength.

The options included, but were not limited to, a sale of the company conducted under the framework of a 'formal sale process' in accordance with the Takeover Code.

"Having received indications of interest, the company is exploring several options with interested parties," the board said on Monday.

"There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.

"Further updates will be made when appropriate."

At 1127 BST, shares in Tekmar Group were up 6.06% at 8.75p.

Reporting by Josh White at Sharecast.com.