UPDATE 1-Redstone lowers FY EBITDA view
* Says loan talks with Eckoh not successful to date
* Exploring ways to further reduce debt
* Shares indicated down 7.7 pct (Adds details)
Sept 8 (Reuters) - British IT and communications firm Redstone (RED.L) lowered its forecast for full-year adjusted EBITDA and said its talks with Eckoh Technologies regarding the loan facility of a unit had not been successful to date.
The company now expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between 5 million pounds and 6 million pounds, which is lower than its previous forecast of 7.5 million pounds to 8.0 million pounds.
Redstone, which recently agreed to sell its telecommunications division to Daisy Group Plc (DAY.L) for 17 million pounds, said it was exploring ways to further reduce debt through a combination of further asset disposals, cost reductions and/or potentially raising new funds.
Redstone said it entered into talks with Eckoh regarding the loan facility between its unit Symphony Telecom Holdings Ltd and Eckoh prior to the repayment date of Aug. 28 but had not reached an outcome.
The loan facility was in place prior to Redstone's acquisition of Symphony from Eckoh in 2006. The total outstanding loan amount is 2.7 million pounds (plus accrued interest). A scheduled repayment instalment of 1 million pounds was due to be paid by Aug. 28.
Shares of the company, which closed at 3.25 pence on Monday on the London Stock Exchange, were indicated down 7.7 percent. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Jarshad Kakkrakandy)
- Tweet this
- Link this
- Share this
- Digg this
- Reprints


Follow Reuters