British cleaning products maker McBride said that its bank has waived debt covenant tests until September, as the loss-making group grapples with rising costs and supply chain challenges.
The maker of Oven Pride, along with a myriad of private-label brands, which has an available liquidity of about £75 million (€87 million) as of June 28, said it had agreed with its banking group to maintain liquidity of at least £40 million (€46.4 million) and to refrain from paying dividends in order to get the waiver.
'We are fully appreciative of the ongoing support that the banking group have and are continuing to give the group through this period of uncertainty caused by macroeconomic factors which have resulted in rapid and unprecedented rises in input costs and ongoing global supply chain challenges,' McBride said in a statement.
It added that the business continues to perform 'in line with market expectations', and plans to provide a fuller trading update after the close of its current financial year, ending 30 June.
'The group continues to explore and assess all avenues to maintain liquidity and create additional funding for the benefit of all stakeholders,' it said.
In February, reporting its first-half results, McBride said its core activities remained strong despite exceptional input cost inflation.
The contract manufacturer added that cost savings under its 'Programme Compass' are on track, and it hopes to save £10 million (€11.98 million) in its current financial year.
“The outlook is of course heavily dependent on our actions to deliver the outstanding essential price increases currently in discussion with our customers, as well as other external factors such as the development of input costs and other inflationary pressures, and continuing supply chain disruptions," CEO Chris Smith said at the time.