CHARTER plc Statement re Financial Results
27/02/2003
Charter announces that discussions are continuing with its banks with regard to the renewal of its £127 million revolving credit facility which is due to expire on 31 July 2003. Currently some £91 million of the facility is drawn, leaving a balance of £36 million undrawn and available.
The Company has been in negotiations with its banks to renew the facility before the release of its preliminary results, which are scheduled for release on 7 March 2003. It has become evident that discussions with the banks will extend beyond this date. Charter remains in compliance with its financial covenants and has been informed by its banks that the outstanding issues should be capable of being satisfactorily resolved within a reasonable time scale, prior to expiry of the current facilities, after receipt of a report from their accountants.
At 31 December 2002 the Group’s net debt stood at less than £195 million, a significant reduction from the 30 June 2002 position of £223 million.
The detailed investigation into the accounting irregularities at a North American subsidiary, announced on 27 January 2003, is nearing completion and has found no evidence that the irregularities extend to any other entities in the Group.
Charter confirms that it intends to make its preliminary results announcement for the year ended 31 December 2002 as scheduled on 7 March 2003.
Contact
Andrew Fenwick; Brunswick +44 (0) 20 7404 5959