Optare buys more time with banks

LANCASHIRE bus maker Optare has had the review date of its bank facility extended while discussions with its bank are ongoing.

The loss-making company recently raised around £8.6m through a share placing in a move to shore up its balance sheet.

Today it said the bank had agreed to extend the facility review date to November 28 and to waive existing covenants until that date.

Directors added that discussions are at an advanced stage and that they were “confident” of being able to renew the group’s bank facilities before that date.

The Blackburn company has seen demand fall dramatically in the last six months. However, it has taken a number of measures to slash costs.

It has closed its Rotherham manufacturing site and reduced headcount as well as slashing the manufacturing time for double deck buses from six weeks to three.

In the six months to June 30, losses widened to £3.9m from £3.2m last time. However, turnover soared 567% to £52.1m from £7.8m.