Creston makes reassuring noises as revenues grew
Creston announced this morning that the group had achieved “like for like” revenue growth of 11% in the quarter to 30 June, excluding the results of DLKW Group that was sold to The Interpublic Group earlier this month.
The group also reminded the market that the sale of DLKW had resulted in a cash balance of £1 million at completion and that it still had an unused bank facility of £25 million.
What Creston did not remind the market was that its £25 million bank facility will reduce to as little as £9 million depending on how much of the DLKW sale proceeds are reinvested in other acquisitions within six months. Nor did Creston remind the market that the sale of DLKW had helped alleviate the £28 million excess of short-term liabilities over its readily realisable assets at 31 March. (See Creston suffers book loss on DLKW sale to slash borrowings.)
© Fintellect Ltd