More financial woes for Eatonfield
STRUGGLING property group Eatonfield has been forced to find loan finance to keep the company going for the next two months, after its overdraft was withdrawn.
The Cheshire-based company said the overdraft facility was axed because of “an expected deterioration in the future cash flows of the group”.
The size of the loan taken was not disclosed but the company said that, along with existing resources, it would provide the group with sufficient working capital for the next eight to 10 weeks.
The company said it would also need an additional £1.5m in further short-term funding to “unlock” the potential value in its key assets.
It added it was “vigorously pursuing” planning permissions to achieve asset realisations and reduce the group’s overall indebtedness, and was actively seeking opportunities to bring income producing assets into the group.
In December, the company reported a pre-tax loss of £5.69m on revenues of £8.45m, for the year to the end of June 2009. Net debt at the yearend amounted to £30.5m.
Chairman Paul Williams said it had been “the most difficult year in the company’s short history”.
Then, it said that a share placing in November which raised £6.9m after expenses, meant the company still had funds for site development, working capital and debt reduction.
