Trading update and extension of filing deadline

Trading, Banking and Strategy update and extension of annual results filing deadline

Trading Update

The Group announced on 2 April 2020 that trading in the first two months of 2020 was in line with the Board's expectations. Since that date, although COVID-19 has affected the business worldwide, results from April and May were not quite as severe as we had first expected. In addition, the early actions we have taken to reduce costs and access Government support programmes across the world have protected the Group from the most severe effects of the crisis to date. However, it is still too early for us to predict with any certainty the likely impact of the economic slowdown on full year 2020 results.

A large number of our offices around the world have now re-opened, with client-facing staff, in particular, returning to work. Even during the lock-down period, we have continued to engage with clients and have successfully secured a number of new client assignments including the UK Government, Australia Government, Iceland Tourism and others. Our companies have shown considerable agility in adapting their business and client servicing to the unprecedented pressures of recent months.

Cash and banking Update 

The Group has a solid balance sheet and as at 23 June had total cash of £52m. The Group has a £36m revolving credit facility (RCF) and £5m overdraft with NatWest which comes up for renewal on 31 July 2021. The RCF is fully drawn and the overdraft remains undrawn, leaving a net cash position of £16m.

We are in discussion with NatWest to relax the covenant limits for the final three quarterly testing periods of the term of the RCF (31 December 2020, 31 March 2021 and 30 June 2021). We are also seeking additional funding, as headroom, through the Government's Coronavirus Large Business Interruption Loan Scheme ("CLBILS") for the period to 31 July 2021.

We anticipate a favourable outcome from these discussions which we expect will be agreed in July.  The additional headroom from the CLBILS facility is not expected to be drawn under anticipated trading scenarios, but the Board believes it to be prudent at this stage to secure the extra headroom.

Strategy Update

We recently commenced a fundamental review of the Group's strategy and its execution to ensure we are best placed to take advantage of the opportunities in our markets. We expect the exercise will run to September 2020. We will present the Group's updated strategic plan at a capital markets day shortly thereafter.

Announcement of audited financial results for the year end 31 December 2019

Like many other companies, we have received a three-month extension to the filing deadline for the audited financial results for the year ended 31 December 2019 from AIM Regulation. The extension was sought due to the disruptions to working practices caused by the COVID-19 pandemic. It allows the Company until 30 September 2020 to finalise and publish its 2019 Audited Annual Results.

The Group expects to announce its Full Year Results for the year ended 31 December 2019 on completion of the 2019 audit, with the current target of July 2020. Final details will be confirmed in a further announcement.

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For further information please call:

M&C Saatchi                                                      +44 (0)20-7543-4500
David Kershaw, Mickey Kalifa

Tulchan Communications                              +44 (0)20-7353-4200
Tom Murray

Numis Securities                                              +44 (0)20-7260-1000
Nick Westlake, Hugo Rubinstein, NOMAD
Charles Farquhar, Corporate Broking