// Studio withdraws revolving credit facility (RCF) of £85m
// It has secured £200m to ensure it has sufficient liquidity
// The RCF has resulted in net debt of £53m
Studio has withdrawn a revolving credit facility (RCF) of £85 million and a securitisation facility of £200 million to ensure it has sufficient liquidity for its near-term requirements amid the Covid-19 crisis.
The RCF was fully drawn on March 27, resulting in net debt of £53 million or cash on balance sheet of £32 million.
Studio said the headroom is a £5 million improvement than it would otherwise have expected to see due to “a particularly cautious approach to cash outflows in the week following the lockdown announcement, which has since been reversed”.
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Drawings under the securitisation facility stood at £198 million at the end of March.
At present, Studio said it has sufficient liquidity to reach requirements without requiring recourse to government funding schemes.
The online retailer said its main priority is the welfare of its colleagues in the midst of the pandemic, and in light of this, it has “moved quickly to implement appropriate processes to protect them”.
It has worked closely with its logistics partners to ensure that deliveries could continue to be made to customers in a safe manner.
As a result, Studio said it has been able to trade well ahead of the prior year during the lockdown period, seeing particularly strong demand for ranges such as toys, games, electricals, fitness and garden.
“I am grateful for their continued support and I hope that our service has helped to make our customers’ lives that little bit easier during this lockdown period,” Studio chief executive Phil Maudsley said.
Given the level of uncertainty in the outlook around the impact of the coronavirus on the group, Studio said it is not yet possible to assess with certainty the impact this will have on the group’s performance for the new financial year.
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