City briefs: DFS; Tissue Regenix; and more
Doncaster-based furniture retailer DFS has confirmed it is in the “advanced stages” of negotiating an additional debt facility of £60m to £70m with its existing lenders.
If successful, this will supplement its existing bank facility of £250m. The additional facility will cover the near-term working capital unwind until sofa deliveries can resume.
A DFS spokesman added: “Alongside this additional debt facility, the company is preparing for a possible non pre-emptive equity issue of up to 19.9% of its existing ordinary share capital, further strengthening the Group’s balance sheet, and providing resilience for a continued disrupted trading environment.
“The Group’s websites have remained operational and continue to see strong momentum, with dfs.co.uk online gross sales up by 20.2% over the period from 25 March 2020 to 17 April 2020.
“Consequently, the Group’s order banks have grown to a total of approximately £192m from approximately £185m.
“The Group has in place all measures that are necessary and appropriate for warehouse activities to operate.
“Its DFS and Sofology trading subsidiaries are receiving inbound deliveries of customer orders from Far East manufacturers, and Dwell is dispatching parcels from its accessories warehouse.
“The Group intends to restart sofa deliveries once it is clear there is a safe and workable approach for two-person installations into customer homes.”
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Pharmaceutical company, 4D Pharma, has announced it has received expedited approval from the UK Medicines and Healthcare products Regulatory Agency (MHRA) to commence a Phase II study of MRx-4DP0004 in patients with COVID-19.
Alex Stevenson, Chief Scientific Officer, 4D pharma said, “As the global SARS-CoV-2 pandemic has developed and the UK has emerged as one of the worst affected areas, 4D pharma has worked intensively with our clinical collaborators and regulatory agencies to bring an urgently needed potential therapy to patients as rapidly as possible
“If, as we believe, MRx-4DP0004 is successful in this study it would represent a highly significant breakthrough in the fight against the coronavirus pandemic.”
Dr. Dinesh Saralaya the study’s lead investigator commented, “The COVID-19 pandemic presents an unprecedented challenge to our healthcare systems and we desperately require the rapid development of new therapies to ease the burden on our intensive care units. Given the scale and urgency of the situation it is vitally important that we generate evidence to support the use of new candidates as quickly as possible, before these can be rolled out to patients who need them.
“As well as its appropriate mechanism of action, the highly favourable safety profile of MRx-4DP0004 makes it a particularly attractive candidate for COVID-19 patients, and may potentially allow us to prevent or delay their progression to requiring ventilation and intensive care.”
The test will be a randomised, double-blind, placebo-controlled trial and look at the efficacy and safety of the orally administered product.
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Leeds-based biotech company Tissue Regenix has received a further $417,000 loan (£334,978) under the US Government-backed COVID-19 business support scheme.
The funds have already been received by the regenerative medical devices firm, which also has a base in Texas.
The latest loan is in addition to a US Government-backed loan of $629,000, (£499,756) announced on 15 April.
A spokesman for the business explained: “Both loans are subject to the same conditions, which include a two-year term and carry a 1% annual interest rate deferred for six months.
“However, under the loan agreements, the principal will not require repayment if the funds are used to support employee payroll, healthcare, utilities and rent payments within the US during the next two months.
“The company intends to use the funds to support these activities and therefore expects the loan not to require repayment.
“Following receipt of the loan, the Board now expects the Group’s current cash runway will extend at least until after the first week of August.”
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Wetherby-based software provider Global Proactis says it has continued to perform well during the early stages of the pandemic.
In an update published today, the firm notes its business is based primarily on a recurring revenue, long-term based contract model which offers security in periods of short-term uncertainty.
It adds: “The Group has been carefully monitoring the developments with respect to the COVID-19 outbreak and the impact, both actual and expected, on its business activities.
“Total contract value, excluding the value of renewals, has increased from £7.5m (six months to 31 January 2020) to £10.4m (eight months to 31 March 2020) against a comparator of £11.3m for the year ended 31 July 2019.
“Organic growth in annual recurring revenues of buyer subscriptions in the period since 31 January 2020 has been maintained.
“And revenues, profitability, cash flow and net debt remain in line with management’s expectations and have not been materially affected by the COVID-19 crisis.
“Whilst mindful of potential delays to new customer contracts and the implementation of existing projects in the short-term during the early stages of the COVID-19 crisis, the Board remains confident of the opportunity to accelerate new business substantially in the medium term.
“Cash flow has been strong and the Group remains comfortably within its existing facilities.”
The Group intends to release its interim results for the six-month period ended 31 January 2020 on 29 April 2020.
