Marshalls in talks with its banks for extra £90m

West Yorkshire-based natural stone and landscaping products firm Marshalls plc on Tuesday issued a further update on measures it is taking in response to the coronavirus crisis, including talks with its banks for an extra £90 million of revolving credit facility (RCF).

Elland-based Marshalls said it has temporarily closed some operations across its manufacturing network and non-essential capital expenditure has been deferred.

The group said it is “utilising the government’s scheme which allows the deferral of tax payments that would normally have been payable in the period to 30 June 2020 and is also utilising the furlough arrangements that are now in place.”

Marshalls said its board agreed to take an immediate 20% reduction in remuneration for the duration of the crisis.

On its bank facilities, Marshalls said: “Our banking partners, NatWest, Lloyds and HSBC, continue to be supportive.

“Each bank has confirmed its full support for an additional £30 million, 12 month committed RCF facility to be provided.

“The discussions held have been positive and, subject to the finalisation of documentation, are now well advanced.

“We anticipate the documentation process to be completed by the end of April.

“These additional facilities comprise £90 million in total and will strengthen the group’s headroom as we continue to manage the current situation.

“Including these additional facilities, the group will have total bank facilities of £255 million of which £230 million will be committed.”