TIDMGUS
RNS Number : 5599Z
Gusbourne PLC
21 September 2020
21 September 2020
Gusbourne Plc
("Gusbourne" or the "Company")
Half Yearly Report
Gusbourne Plc, the English sparkling wine producer, is today
pleased to announce its unaudited interim results for the six
months ended 30 June 2020.
Highlights
-- Net revenue (1) up by 24% to GBP890,000 (30 June 2019: GBP716,000)
-- Gross profit (2) up by 23% to GBP518,000 (30 June 2019: GBP421,000)
-- Adjusted EBITDA (3) loss of GBP603,000 (30 June 2019: GBP609,000)
-- Completion of a GBP10.5 million asset-based lending facility
with PNC Financial Services UK Ltd ("PNC")
-- Significant growth in sales from direct to consumer and
export channels offsetting our traditional channels following the
impact of COVID-19 on our traditional UK trade channels.
-- Ongoing success in international wine competitions with a
total of 32 medals awarded to date in 2020, including twelve gold
medals, two trophies, and the Judges Selection Medal in the
prestigious Texsom awards in the United States in February.
Charlie Holland, Chief Winemaker and Chief Executive Officer
commented:
"We are delighted to report year on year revenue growth of 24%
over the last six months, despite the challenges presented by
COVID-19. We intend to continue to produce and sell a range of
vintage wines of exceptional quality from grapes grown in our own
vineyards, and to further grow and develop the business in a manner
which remains consistent with the aspirations for the Gusbourne
brand.
Warm spring weather led to an early and successful flowering
indicative of good yield potential. Less intensity of warmth as we
entered the ripening period will slightly lengthen the time to
harvest allowing for the complexities of flavour to mature. The
prospects for the quality of the grapes, which are due to be
harvested shortly, remain high as in previous years.
Current trading reflects continuing sales growth combined with
the careful management of costs and liquidity. We remain confident
about the long term prospects of the business."
(1) Net revenue is revenue reported by the Company after excise
duties payable and grants received.
(2) Gross profit is reported by the Company after excise duties
payable and grants received.
(3) Adjusted EBITDA means profit from operations/(loss from
operations) before fair value movement in biological produce,
interest, tax, depreciation and amortisation.
For further information contact:
Gusbourne Plc
Charlie Holland +44 (0)1233 758 666
Canaccord Genuity Limited
Bobbie Hilliam +44 (0)20 7523 8000
Georgina McCooke
Note: This announcement and other press releases are available
to view at the Company's website: www.gusbourneplc.com
Note to Editors
Gusbourne PLC ("the Company") is engaged, through its wholly
owned subsidiary Gusbourne Estate Limited (together the "Group"),
in the production and distribution of a range of high quality and
award winning English sparkling wines from grapes grown in its own
vineyards in Kent and West Sussex. The majority of the Group's
mature vineyards are located at its freehold estate at Appledore in
Kent where the winery is also based.
Financials
Results for the six months ended 30 June 2020
Net revenue for the period amounted to GBP890,000 (2019:
GBP716,000), an increase of 24% on the corresponding period last
year.
Operating expenses of GBP1,529,000 (2019: GBP1,377,000),
included depreciation of GBP336,000 (2019: GBP347,000) and also
included planned increased expenditure on sales and marketing costs
reflecting continuing investment in the development and future
growth of the business and its sales beyond the current financial
year. This increased investment is expected to drive future revenue
growth in future periods and also reflects the confidence the
directors have in the Gusbourne brand.
Adjusted EBITDA for the year was a loss of GBP603,000 (2019:
GBP609,000). The operating loss for the year after depreciation and
amortisation was GBP1,116,000 (2019: GBP967,000). The loss before
tax was GBP1,568,000 (2019: GBP1,137,000) after net finance costs
of GBP452,000 (2019: GBP170,000).
These losses were in line with the directors expectations and
the long-term development strategy of the Group which is based on
continuing sales growth of the Gusbourne wines, supported by
increasing wine stocks. The Group is focused on achieving a
positive cashflow during the course of the next few years.
Balance Sheet
The changes in the Group's balance sheet during the year reflect
ongoing investment in, and development of, the Group's business,
net of income from wine sales. The Group invested in plant and
equipment for the vineyards and the winery amounting to GBP167,000
(2019: GBP197,000).
Total assets at 30 June 2020 of GBP23,899,000 (2019:
GBP21,523,000) include freehold land and buildings of GBP6,319,000
(2019: GBP6,433,000), vineyards of GBP3,076,000 (2019:
GBP3,222,000), right of use assets of GBP2,045,000 (2019:
GBP1,471,000), biological assets (grapes) of GBP660,000 (2019:
GBP707,000), inventories of wine stocks amounting to GBP7,669,000
(2019: GBP5,752,000), and cash of GBP473,000 (2018: GBP481,000).
Intangible assets of GBP1,007,000 (2019: GBP1,007,000) arose on the
acquisition of the Gusbourne Estate business on 27 September
2013.
As noted above, our main operating assets continue to grow,
which provides further asset backing for our investors as well as
support for our planned future sales growth.
Intangible assets, which includes the Gusbourne brand itself,
remain unimpaired at their historical amount and in accordance with
the relevant accounting standards. No account has been taken with
regards to any potential fair value uplift that may be
appropriate.
The Group's net tangible assets at 30 June 2020 amount to
GBP9,619,000 (2019: GBP12,166,000) and represent 91% of total
equity (2019: 92%). Net tangible assets per share at 30 June 2020
was 20.7 pence (2019: 26.6 pence). It is important to note that
these net tangible assets figures do not necessarily reflect
underlying asset values, in particular in respect of the Group's
inventories, which are reported at the lower of cost and net
realisable value. These inventories are expected to continue
growing until approximately four years after vineyard maturity.
These additional four years reflect the time it takes to transform
our high-quality grapes into Gusbourne's premium sparkling wine.
The anticipated underlying surplus of net realisable value over
cost of these wine inventories, which is not reflected in these
accounts and in the net tangible assets per share quoted above,
will become an increasingly significant factor of the Group's asset
base as the inventories continue to grow.
Financing
The Group's activities are financed by shareholder's equity and
debt which comprises loans, lease liabilities, other borrowings and
deep discount bonds. At 30 June 2020 debt amounted to GBP12,133,000
(2019: GBP7,250,000) and represents 114% of total equity (2019:
55%).
On 1 June 2020, Gusbourne announced that its subsidiary
Gusbourne Estate Limited has entered into an agreement with PNC
Business Credit, a trading style of PNC Financial Services UK Ltd,
for up to GBP10.5m of asset-based lending facilities. (the "PNC
Facilities"). The PNC Facilities will primarily be used to provide
working capital for the Group. It will also be used to refinance
certain existing loan facilities.
The PNC Facilities will be provided on a revolving basis over a
minimum period of 5 years and allow flexible drawdown and
repayments in line with the Company's working capital requirements.
The interest rate will be at the annual rate of 3 per cent over the
Bank of England Base Rate. The facilities will be secured by way of
first priority charges over the Company's inventory, receivables
and freehold property as well as an all assets debenture.
On completion approximately GBP4.6m of the PNC Facilities was
drawn down by Gusbourne Estate Limited with approximately GBP2.1m
being used to repay the existing secured Barclays bank facilities
in full and GBP1.3m used to part repay existing short term loans..
The balance of GBP1.2m was drawn down for working capital purposes.
Further drawdowns will be made from time to time in line with the
needs of the business.
Of the GBP1.3m drawdown at completion to part repay existing
short-term loans, GBP0.8m was used to part repay a short-term loan
of GBP1.25m received on 23 December 2019 from Franove Holdings
Limited. GBP0.5m was used to part repay a short-term loan of
GBP2.0m received on 31 May 2019 from a company controlled by Lord
Ashcroft.
Following these repayments Franove Holdings Limited has agreed
to extend the repayment date of its outstanding loan of GBP0.5m to
15 August 2021, at the same 15% rate of interest, with the loan
becoming secured behind PNC at the same ranking as the existing
outstanding deep discount bonds issued by the Company. Gusbourne
Estate Limited has also agreed with Franove that in the event it
seeks to repay its loans (excluding its PNC facilities) further,
the repayment of the Franove Holdings Limited loan will take
priority.
The remaining Lord Ashcroft loan of GBP1.7m has been refinanced,
by a company controlled by him, with a new deep discount bond
maturing on 15 August 2021 and with a coupon of 15% per annum
rolled quarterly and secured behind PNC at the same ranking as the
existing outstanding bonds issued by the Company.
The Board have assessed the ability of the Group to repay its
existing deep discount bonds and a short-term loan which are due
for maturity in August 2021. The Board believe that the Group will
be able to raise further equity and/or debt funds to repay or
refinance these amounts as and when they fall due. Additional
funding will continue to be sought by the Company over the coming
few years to fund ongoing growth in the Company's operations and
asset base, in line with its development strategy.
Recent awards
We have continued our success in major wine competitions winning
32 medals (to date) at national and international competitions,
where we are judged against some of the finest wines from around
the world. Awards received during the year include:
-- 4 gold medals and trophies for 'Best still red wine' and
'Best still rosé wine' at the UK based Wine GB Awards in August
2020.
-- A Platinum medal and 'Judges Selection Medal' awarded the
prestigious Texsom based in the US held in February 2020
-- 2 gold medals at the Japan Wine Awards in Tokyo held in February 2020
-- A gold medal at the Asian Sparkling Masters in Hong Kong held in June 2020
-- A gold medal at the Global Sparkling Wine Masters held in London during June 2020
-- A gold medal at the Global Rosé Masters held in London during June
-- A gold medal at the Global Pinot Noir Masters held in London during May 2020
Current trading and outlook
Warm spring weather led to an early and successful flowering
indicative of good yield potential. Less intensity of warmth as we
entered the ripening period will slightly lengthen the time to
harvest allowing for the complexities of flavour to mature. The
prospects for the quality of the grapes, which are due to be
harvested shortly, remain high as in previous years. The vines will
remain subject to the normal seasonal climatic and disease risks
throughout the remaining part of the growing season. Excellent
yields from the 2019 harvest have allowed us to increase our wine
stocks for future sales.
The Company experienced a strong start to trading in the first
three months of the year with revenue performance ahead of
directors' expectations. However, since the end of March 2020, the
Company's distribution channels have been impacted by COVID-19. The
Company has engaged in a number of new sales initiatives to
mitigate this impact and the directors are pleased to report
increasing demand for wine in some channels, especially online.
With the vast majority of our on-trade customer base now reopened
for business we are optimistic about further sales growth in the
second half of the year.
On the production side, both vineyard and winery operations have
continued to work through the lockdown with appropriate safety
protocols put in place. The Company furloughed a number of staff
members, particularly in the sales function and took various steps
to reduce costs at during the national lockdown period. As normal
trading resumes, we are delighted to report that the vast majority
of staff have now returned from furlough.
Whilst the immediate outlook for sales still remains uncertain
due to COVID-19, the directors remain confident about the Group's
long term prospects.
We are delighted to have secured significant asset-based
financing facilities from PNC and which aligns with the working
capital requirements of the business. We are pleased to welcome PNC
as a key stakeholder and look forward to working with them as we
continue to develop our business over the coming years.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2020
Unaudited Unaudited Audited
Six months Six months Year ended
to to
30 June 30 June 31 December
Notes 2020 2019 2019
GBP'000 GBP'000 GBP'000
Revenue 2 1,021 794 1,845
Excise duties (59) (78) (192)
Net revenue 962 716 1,653
Cost of sales (372) (295) (735)
Gross profit 590 421 918
Fair value movement in biological
assets 6 (177) (11) -
Fair movement in biological
produce 6 - - (172)
Administrative expenses (1,529) (1,377) (2,902)
Loss from operations (1,116) (967) (2,156)
Finance expense 4 (452) (170) (445)
Loss before tax (1,568) (1,137) (2,601)
Tax expense - - -
Loss for the period attributable
to
owners of the parent (1,568) (1,137) (2,601)
Loss per share attributable
to
the ordinary equity holders
of the parent:
Basic and diluted (3.37p)) (2.49p) (3.2 (5.67p)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2020
Unaudited Unaudited Audited
30 June 30 June 31 December
Notes 2020 2019 2019
Assets GBP'000 GBP'000 GBP'000
Non-current assets
Intangibles 1,007 1,007 1,007
Property, plant and equipment 5 13,062 12,845 13,231
Other receivables 40 - 90
14,109 13,852 14,328
--------- --------- -----------
Current assets
Biological assets 6 660 707 -
Inventories 7 7,669 5,752 7,463
Trade and other receivables 988 731 707
Cash and cash equivalents 473 481 1,009
--------- --------- -----------
9,790 7,671 9,179
--------- --------- -----------
Total assets 23,899 21,523 23,507
--------- --------- -----------
Liabilities
Current liabilities
Trade and other payables (1,140) (1,100) (752)
Finance leases - (43) -
Lease liabilities (123) (68) (123)
Loans and borrowings 8 - (787) (3,379)
--------- --------- -----------
(1,263) (1,998) (4,254)
--------- --------- -----------
Non-current liabilities
Loans and borrowings 8 (10,017) (4,923) (5,026)
Lease liabilities (1,993) (1,415) (2,033)
Finance leases - (14) -
(12,010) (6,352) (7,059)
Total liabilities (13,273) (8,350) (11,313)
NET ASSETS 10,626 13,173 12,194
--------- --------- -----------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
At 30 June 2020
Issued capital and reserves attributable
to
owners of the parent
Share capital 12,048 12,040 12,048
Share premium 10,915 10,438 10,915
Merger reserve (13) (13) (13)
Retained earnings (12,324) (9,292) (10,756)
-------- ------- --------
TOTAL EQUITY 10,626 13,173 12,194
-------- ------- --------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2020
Unaudited Unaudited Audited
Six months to months to Six months to Year ended
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Cashflows from operating
activities
Loss for the year/period before tax (1,568) (1,137) (2,601)
Adjustments for:
Depreciation of property, plant and
equipment 336 347 699
Finance expense 452 170 445
Movement in biological assets (660) (695) -
Fair value movement in biological
asset - - 172
(Increase) in trade and other
receivables (120) (138) (209)
Increase in inventories (163) (470) . (2,220)
Increase in trade and other payables 388 617 269
----------------------- ------------- ----------
Cash outflow from operations (1,335) (1,306) (3,445)
Investing activities
Purchases of property, plant and
equipment,
excluding vineyard establishment (167) (197) (339)
Sale of property, plant and equipment - 10 11
Net cash from investing activities (167) (187) (328)
----------------------- ------------- ----------
Financing activities
Loan repayments (3,253) (17) (34)
New loans issued 4,638 750 3,250
Loan issue costs (124) - (15)
Repayment of lease liabilities (83) (23) (125)
Interest paid (212) (47) (90)
Issue of ordinary shares - - 485
Net cash from financing activities 966 663 3,471
----------------------- ------------- ----------
CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
For the six months ended 30 June 2020
Unaudited Unaudited Audited
Six months to Six months to Six months to Period to
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Net increase/(decrease) in cash and cash
equivalents (536) (830) (302)
Cash and cash equivalents at beginning of
period 1,009 1,311 1,311
---------------------------- ------------- ------------
Cash and cash equivalents at end of period 473 481 1,009
============================ ============= ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2020
Total
attributable
to equity
holders
Share Share Merger Retained of
Audited: capital premium reserve earnings parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
31 December
2018 12,040 10,438 (13) (8,155) 14,310
Share issue - - - - -
Share issue
expenses - - - - -
Comprehensive
loss for the
period - - - (1,137) (1,137)
______ ______ ______ _____ ______
30 June 2019 12,040 10,438 (13) (9,292) 13,173
______ ______ ______ ______ ______
Share issue 8 477 - - 485
Comprehensive
loss for the
period - - - (1,464) (1,464)
______ ______ ______ _____ ______
31 December
2019 12,048 10,915 (13) (10,756) 12,194
Unaudited:
Comprehensive
loss for
the period - - - (1,568) (1,568)
______ ______ ______ _____ ______
30 June 2020 12,048 10,915 (13) (12,324) 10,626
______ ______ ______ ______ ______
NOTES TO THE ACCOUNTS
For the six months ended 30 June 2020
1 Statement of accounting policies
The interim financial statements have been prepared in
accordance with the recognition and measurement principles as
adopted by the EU, applying the accounting policies and
presentation that were applied in the preparation of the Company's
published consolidated financial statements for the year ended 31
December 2019 and are consistent with the accounting policies
expected to apply in its financial statements for the year ended 31
December 2020.
The financial information for the six months ended 30 June 2020
has not been subject to an audit nor a review in accordance with
International Standard on Review Engagements 2410, Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity, issued by the Auditing Practices Board. The
comparative financial information presented herein for the year
ended 31 December 2019 does not constitute full statutory accounts
within the meaning of Section 434 of the Companies Act 2006. The
Group's annual report and accounts for the year ended 31 December
2019 have been delivered to the Registrar of Companies. The Group's
independent auditor's report was unqualified and did not include
references to any matters to which the auditors drew attention by
way of emphasis without qualifying their report and did not contain
a statement under section 498(2) or 498(3) of the Companies Act
2006.
Basis of preparation
The Board of the Company continually assesses and monitors the
key risks of the business. These risks have not significantly
changed from those set out in the Company's Annual Report for the
period ended 31 December 2019.
Going concern
The Directors believe the Group to be a going concern on the
basis that it has sufficient cash available from committed
facilities to continue operations for at least 12 months from the
date these financial statements were approved and in addition will
not breach any of its key covenants during this period.
In coming to their conclusion, the Directors have considered the
Group's profit and cash flow plans for the coming period, and in
the light of the outbreak of COVID-19 have run various downside
"stress test" scenarios. These scenarios assess the impact of
COVID-19 on the Group over the next 12 months and in particular on
the Group's sales through its key distribution channels. These
stress tests indicate the Group can withstand any ongoing adverse
impact on revenues for at least the next 12 months.
In addition, these stress test scenarios assess the Group's
potential debt requirements against the Group's GBP10.5m
asset-based lending facility, of which c. GBP5.9m was undrawn on 30
June 2020. The stress test scenarios do not show a requirement in
excess of the Group's undrawn facilities nor do they show the Group
breaching any of its key covenant tests on the monthly testing
points which start from 31 December 2020.
The stress test scenarios also include certain cost mitigation
actions, including but not limited to furloughing of certain staff,
operating cost reductions and reduced capital expenditure.
Under the significant stress test scenarios, we have run, the
Group could withstand a material and prolonged adverse impact on
revenues and continue to operate within the available lending
facilities. Accordingly, the Group and the Company continues to
adopt the going concern basis in preparing its Financial
Statements.
The Board have also assessed the ability of the Group to repay
its existing deep discount bonds and a short-term loan which are
due for maturity in August 2021. The Board believe that the Group
will be able to raise further equity and/or debt funds to repay or
refinance these amounts as and when they fall due as well as
providing additional funds for further development of the
Group.
The financial statements do not include any adjustments should
the going concern basis of preparation be inappropriate.
2 Revenue
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Wine sales 895 746 1,717
Other income 54 48 128
Grants 72 - -
Total Revenue 1,021 794 1,845
--------- --------- -----------
3 Loss from operations
Loss from operations has been arrived at after charging:
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Depreciation of property, plant
and equipment 336 347 699
Staff costs expensed to consolidated
statement of income 443 389 835
4 Finance expense
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Finance expense
Interest payable on borrowings 296 47 200
Amortisation of bank transaction
costs 13 3 5
Discount expense on deep discount
bonds 143 120 240
Total finance expense 452 170 445
--------- --------- -----------
5 Property, plant and equipment
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Freehold land and buildings 6,319 6,433 6,383
Plant, machinery and motor vehicles 1,592 1,682 1,604
Mature vineyards 3,076 3,222 3,144
Computer equipment 30 37 32
Right of use assets 2,045 1,471 2,068
13,062 12,845 13,231
--------- --------- -----------
Right of use assets
Right of use assets comprise land leases on which vines have
been planted and property leases from which vineyard operations are
carried out from.
6 Biological assets
Biological assets represent grapes growing on the Group's vines.
Once the grapes are harvested they are deemed to be Biological
produce and transferred to inventories.
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Crop growing costs 837 718 1,510
Fair value of grapes harvested and
transferred
to inventories - - (1,338)
Fair value movement in biological
assets (177) (11) -
Fair value movement in biological
produce - - (172)
--------- --------- -----------
Fair value of biological assets at
the reporting date 660 707 -
--------- --------- -----------
The fair value of biological assets at the reporting date is
determined by reference to estimated market prices less costs to
sell. The estimated market price for grapes used in respect of 2020
is GBP2,300 (2019: GBP2,300) per tonne. The fair value is subject
to a discount factor of 55% (2019: 50%) due to the grapes, as at
the reporting date, being approximately 3 months away from being
ready for harvest.
A 10% increase in the estimated market price of grapes to
GBP2,530 per tonne would result in an increase of GBP72,000 in the
fair value of biological assets at the reporting date. A 10%
decrease in the estimated market price of grapes to GBP2,070 per
tonne would result in a decrease of GBP71,000 in the fair value of
biological assets at the reporting date.
7 Inventories
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Finished goods 140 139 440
Work in progress 7,529 5,613 7,023
7,669 5,752 7,463
--------- --------- -----------
8 Loans and borrowings
Unaudited Unaudited Audited
30 June 30 June 31 December
2020 2019 2019
GBP'000 GBP'000 GBP'000
Current liabilities
Bank loans - 34 34
Other loans - 753 3,345
- 787 3,379
--------- --------- -----------
Non-current liabilities
Bank loans 4,638 2,042 2,025
Other loans 506 - -
Deep Discount Bonds 4,873 2,881 3,001
--------- --------- -----------
Total loans and borrowings 10,017 4,923 5,026
--------- --------- -----------
On 1 June 2020, Gusbourne announced that its subsidiary
Gusbourne Estate Limited has entered into an agreement with PNC
Business Credit, a trading style of PNC Financial Services UK Ltd,
for up to GBP10.5m of asset-based lending facilities. (the "PNC
Facilities"). The PNC Facilities will primarily be used to provide
working capital for the Group. It will also be used to refinance
certain existing loan facilities.
The PNC Facilities will be provided on a revolving basis over a
minimum period of 5 years and allow flexible drawdown and
repayments in line with the Company's working capital requirements.
The interest rate will be at the annual rate of 3 per cent over the
Bank of England Base Rate. The facilities will be secured by way of
first priority charges over the Company's inventory, receivables
and freehold property as well as an all assets debenture.
On completion approximately GBP4.6m of the PNC Facilities was
drawn down by Gusbourne Estate Limited with approximately GBP2.1m
being used to repay the existing secured Barclays bank facilities
in full, GBP1.3m used to part repay the existing short term loans
to Franove Holdings Limited and a company controlled by Lord
Ashcroft KCMG PC. The balance of GBP1.2m was drawn down for working
capital purposes. Further drawdowns will be made from time to time
in line with the needs of the business.
Of the GBP1.3m drawdown at completion to part repay existing
short-term loans, GBP0.8m was used to part repay a short-term loan
of GBP1.25m received on 23 December 2019 from Franove Holdings
Limited. GBP0.5m was used to part repay a short-term loan of
GBP2.0m received on 31 May 2019 from a company controlled by Lord
Ashcroft.
Following these repayments Franove Holdings Limited has agreed
to extend the repayment date of its outstanding loan of GBP0.5m to
15 August 2021, at the same 15% rate of interest, with the loan
becoming secured behind PNC at the same ranking as the existing
outstanding deep discount bonds issued by the Company. Gusbourne
Estate Limited has also agreed with Franove that in the event it
seeks to repay its loans (excluding its PNC facilities) further,
the repayment of the Franove Holdings Limited loan will take
priority.
The remaining Lord Ashcroft loan of GBP1.7m has been refinanced,
by a company controlled by him, with a new deep discount bond
maturing on 15 August 2021 and with a coupon of 15% per annum
rolled quarterly and secured behind PNC at the same ranking as the
existing outstanding bonds issued by the Company.
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