Postie Plus gains extension of banking facilities

Postie Plus Group has again avoided a breach of its banking covenants and gained a 12-month extension on its facilities.

"Bank of New Zealand completed its annual review of the banking facilities," the Christchurch-based company says in a statement.

Postie Plus yesterday flagged potential breaches of its banking covenants for the months of November 2012, January and April 2013. That came after the retailer was forced to renegotiate terms of its loans with BNZ in October.

According to the company's latest annual report, Postie Plus had secured bank loans of about $9.76 million as at August 5 at an average interest rate of 5.15%.

Notes to the accounts show the company did not meet its interest to ebit ratio covenant of 1.5 times for the rolling 12 months to April 2012, though it was in compliance with proprietorship and liquidity covenants.

Postie Plus got a waiver in May of this year but the bank at that time reserved its rights pending an expected return to compliance.

In September, the company reported an annual net loss of $183,000 including one-off restructuring costs. The normalised full-year net profit was $493,000.

The shares (NZX: PPG) rose 5% to 21 cents. Volume was light, with just 2400 shares traded.


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