SThree eligible for up to £300m in BoE Covid financing

Science, technology, engineering and mechanics specialist staffing business SThree updated the market on its financial position on Wednesday, reporting that it has received confirmation that it is eligible to access up to £300m of funding under the Bank of England's Covid Corporate Financing Facility (CCFF).

The London-listed firm said of that, the board had agreed, in consultation with its existing revolving credit facility lenders, that the CCFF facility would be capped at £50m.

It said it was continuing to benefit from a “strong” financial position, reporting that as at 18 May, it had total accessible liquidity of £129.4m.

That was made up of £24.4m in net cash, a £50m revolving credit facility which was now fully drawn down, a £5m overdraft, and £50m from the CCFF, the latter two of which were not yet drawn down.

In addition, SThree said it has a £20m accordion facility, as well as a “substantial” working capital position, reflecting net cash due to SThree for placements already undertaken.

“We are in the midst of a health crisis and whilst governments across the world are taking their next steps in response to the pandemic, uncertainty persists,” the board said in its statement.

“The resultant economic environment has meant the majority of companies have been focussed on their own immediate challenges.

“Those challenges are often specific to their sector, many even within particular niches, and sometimes distinct to each company.”

That, SThree said, had led to aggregate demand for staffing being “significantly less” than what would normally be expected, with notable spikes and troughs across different markets and industries in the short term.

At 1202 BST, shares in SThree were down 1.38% at 215p.