In what is a second share issuance in UK fenestration, Eurocell has raised over £17m. They issued 10m+ new shares to the market as they sought extra liquidity to help cope during the cornavirus crisis. They are also investing in a new warehouse.
The single most important subject in UK fenestration, other than making sure we all help to stop the spread of the virus, is cash. Or rather a lack of it. Companies like Eurocell and Safestyle are in a position to raise cash by issuing new shares and going to the markets. Although its not perfect, and not the answer to all problems, they are able to tap that well to help raise funds as and when. Most of us are unable to do that.
This is why over the coming weeks we are going to see the conversation about cash and liquidity in our sector become even more frought. Payments up and down the supply chain aren’t taking place. CIBLS money is nowhere to be seen and is likely to take at least a number of weeks for it to appear. Grant money will only last for a short period of time. Unless the UK government comes up with an even more lucrative support scheme, then some companies are going to be forced into making some difficult choices very soon.
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