1st Apr 2020 09:52
(Alliance News) - Hospital group Spire Healthcare Group PLC on Wednesday suspended dividends but did announce covenant waivers from its lenders.
Spire had previously announced a final dividend of 2.5 pence per share for 2019, but this will now not be proposed.
However, the company has secured some relief from its banks. The next two covenant tests, due on June 30 and December 31, have been waived.
London-headquartered Spire has "sufficient" liquidity and financial stability, it said, following its agreement signed with NHS England in March. Spire has agreed to make its private hospitals available to the NHS during Covid-19.
All 35 of its private hospitals in England will be made available to the NHS for 14 weeks minimum, and on a rolling basis from then.
Spire also has an undrawn revolving credit facility of GBP100 million, it noted.
Chief Financial Officer Jitesh Sodha said: "We have had constructive and helpful discussions with our group of lenders, reflecting our solid relationship with them, and would like to thank them for their support while we assist NHS England in combating Covid-19."
Shares were 3.3% lower on Wednesday morning in London at a price of 75.50p each.
By George Collard; [email protected]
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