Cardno Limited (CDD) today announced it has negotiated a permanent reduction in its debt facilities from US$210.0m in June 2016 to US$108.5m. This reduction of debt facilities reinforces Cardno’s strengthening balance sheet and reflects the Company’s decreasing focus on the use of debt in its day to day operations.
As part of the reduction agreed with Cardno’s banking partners, the banks have also agreed to covenant waivers (for the next 2 testing periods) on any potential further impairment associated with the Caminosca operations and certain non-cash and cash costs associated with completing the restructuring by the company currently underway.
The focus for 2017 is to continue the rebuild of Cardno and ensure that the business establishes a strong platform for long term growth both operationally and from a capital and balance sheet perspective.
The Company expects, post the sale of XP Solutions, for the Earnings Before Interest Tax, Depreciation and Amortisation (“EBITDA”) to remain challenged for FY17.
Although we are very early in the new financial year, the Company expects EBITDA prior to abnormal costs, or costs associated with the restructuring of the business and Caminosca, to be of a similar order of magnitude to the reported EBITDA for continuing operations in FY16.
A further update of operational performance will be provided at the AGM on the 27 of October 2016.