New Zealand-based Fisher & Paykel Appliances’ (FPA) has won a one month extension from its banking syndicate for the repayment of the company’s $NZ80 million ($A63.9 million) interim bank funding facility.
The new deadline is May 29 after the facility, announced in mid-March to meet FPA’s immediate funding needs, had been due on Thursday.
The shares rose 0.5c to 35c in Australian trading.
The company’s managing director, John Bongard said the company continued to work closely with its banking syndicate to refinance its total bank debt by May 29.
That would be subject to FPA and its banks being able to mutually agree terms.
"The company’s expectation is that the interim funding facility will be repaid from the proceeds of that refinancing," Mr Bongard said.
Apart from the date extension, all other terms of the interim funding facility were unchanged.
The agreement included a waiver of Appliances’ debt cover ratio and interest cover ratio covenants for the term of the facility.
Previously the company said its debt was projected to be about $NZ570 million ($A455.27 million) at the end of March.
Victorian transport equipment supplier Maxitrans Industries has again downgraded its full year profit guidance, this time telling the market earnings are expected to be down 75% for the current year.
The company told the ASX yesterday that the larger than expected fall was due to falling order numbers.
The company said its order book hadn’t been boosted by the 30% investment allowance for business or stimulus spending from government.
Maxitrans had predicted previously underlying net profit for the current financial year to be 50% lower than the previous year.
Net profit for last financial year was $16.1 million.
The shares eased 1.5c, or 6.6%, to 21c.
The Victorian-based company said in March it would shed 54 jobs at its main manufacturing factory in Ballarat.
Working weeks also have been reduced, pricing has been renegotiated, and key suppliers and senior management have taken a 10% cut in fees and salaries.
"In announcing MXI’s results for the half year ended 31 December 2008, the Directors advised it was likely that underlying net profit after tax (excluding a non cash impairment charge of $6.137 million) for the full year to 30 June 2009 would be in the order of 50% lower than the prior year based on order intake levels and general business activity at the time.
"Despite further interest rate reductions, the 30% investment allowance, and other government initiatives to stimulate economic activity, each of our key markets have contracted further and order intake has continued to fall.
"Customer interest in purchasing trailers, vans, and tippers is solid but the conversion of quotations into firm orders continues to be impacted by low business confidence and the inability of operators to access credit.
"As a result of these developments, the Board and management have taken a number of steps to manage costs and preserve cash and have continued to focus aggressively on sales activities to take advantage of all opportunities in the market place.
"Amongst other things, staff numbers have been adjusted to match current and anticipated demand, reduced working weeks have been implemented where possible, pricing has been renegotiated with key suppliers, and the Directors and Senior Management team have accepted a 10% reduction in fees and salaries.
"Aggressive management of working capital and the implementation of the Share Purchase Plan and Dividend Reinvestment Scheme have facilitated the effective management of cash resources.
"Considering the current state of the market and the prevailing economic climate, the Directors are of the opinion that underlying net profit after tax (excluding a non cash impairment charge of $6.137 million) for the full year to 30 June 2009 is likely to be in the order of 75% lower than the prior year which, shareholders will recall, was a record year in terms of order intake and sales."
