Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Builders merchants Travis Perkins might have to launch a £350m rights issue to see it through the rest of the downturn, according to analysts at Royal Bank of Scotland.
The analyst report said: “Trading continues to deteriorate…Given the need to cover a range of downside trading risks, we believe Travis must deliver a robust balance sheet to see it through what could be very challenging trading in both 2009 and 2010.
“To insulate the group from further covenant pressure, protect its debt facilities and ensure the business can be managed for the long term, we expect a £350m equity issue in the coming weeks.”
