McBride secures covenant test waiver

Household goods manufacturer McBride said on Wednesday that its banking group had waived covenant tests scheduled for June until 30 September.

McBride stated that in reaching an agreement for the waiver, it agreed to maintain in effect restrictions announced on 22 December, namely that the group will continue to maintain liquidity of at least £40.0m and will not pay dividends until it shows compliance with existing covenants.

The London-listed firm said it had roughly £75.0m of available liquidity as of 28 June and noted that it was continuing to explore and assess all avenues to maintain liquidity and create additional funding.

"We are fully appreciative of the ongoing support that the banking group have and are continuing to give the group through this period of uncertainty caused by macroeconomic factors which have resulted in rapid and unprecedented rises in input costs and ongoing global supply chain challenges," said McBride.

"The group continues to perform in line with market expectations and will provide a fuller trading update after the close of its current financial year ending 30 June 2022."

As of 1000 BST, McBride shares had shot up 10.79% to 18.11p.

Reporting by Iain Gilbert at Sharecast.com