Doncaster furniture store giant DFS raises £60m to boost finances during lockdown

DFS has placed approximately 42.3 million shares at 150 pence each, raising roughly £64m.

The company has closed all showrooms and manufacturing operations due to the COVID-19 outbreak - but is still taking orders on its websites.

In a statement, DFS said: “DFS has separately announced a trading update that outlines the significant impact of COVID-19 on the company’s operations and its outlook.

“This reflects the closure of its entire store network and the suspension of its delivery operations to comply with social distancing guidelines.

“The group has also announced a number of mitigating actions to protect its financial position, which have reduced its current cash operating costs to under £14m per month.

“The group also announces today that it has received credit approval for a new 12 month bank facility of £70m from its existing lending banks, which further strengthens the group’s balance sheet beyond the existing bank facilities of £250m.

“Existing covenants will drop away whilst this incremental facility is in place and for the six months following, but new financial covenants of minimum rolling quarterly and cash covenants will apply.

“The group also has undertaken to not pay dividends or conduct any acquisitions until either six months after the repayment of the incremental facility, or following the refinancing of the existing bank facilities.

“This new facility is subject to documentation on terms and conditions in line with the existing facilities and is conditional on the completion of the placing.”