Touchstar says performed as expected in first quarter; plans talks with lenders

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Logistics services group Touchstar said it had performed as expected in the first quarter, but was bracing for tougher times ahead and would hold talks with its lenders about its capital position.

The company said revenue in the three months through march was 'broadly on budget', with 'growth from continuing businesses' up 40%.

'However, given the current and likely impacts of coronavirus we are now planning for prolonged uncertainty,' Touchstar said.

'It is impossible to provide clarity on the outlook for the weeks and months ahead.'

The company said it was reducing cash expenditure to protect its liquidity in the short term, whilst continuing with a few key long-term strategic programs.

'In our supply chain we will only spend where necessary to deliver confirmed orders,' it added.

Touchstar said it had not debt and cash resources, with a 'high-quality' debtor book of about £850k.

'Many of our customers are very busy, are key to keeping the basic infrastructure of the UK operating, and continue to pay in a timely manner,' it added.

'We believe that Touchstar should meet the eligibility requirements of the Coronavirus Business Interruption Loan Scheme, being a UK incorporated company that makes a material contribution to economic activity in the UK.'

'We intend to approach our banking partners to determine the most effective overall solution.'

At 9:31am: (LON:TST) Touchstar Plc share price was 0p at 25p


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