Saferoads (ASX:SRH) Financial Update

Saferoads Holdings Limited (ASX:SRH) has secured a temporary extension of $250,000 to its overdraft facility, along with a waiver for both past and future breaches of its EBITDA to debt covenant, effective until December 10, 2024. The company continues to benefit from the financial backing of the Commonwealth Bank of Australia (CBA).

Executive Commentary

The Group is pleased to have successfully negotiated the temporary extension of our overdraft facility and the waiver for EBITDA to debt covenant breaches. This support from the Commonwealth Bank of Australia provides us with the necessary financial flexibility during this challenging period. Additionally, the decision to solicit offers for the potential sale of our Road Safety Rental division is a strategic move to address our funding challenges and capitalize on the current market dynamics. While the trading environment remains competitive, we are focused on achieving positive EBITDA results despite the anticipated modest bottom-line losses due to substantial depreciation charges.

Summary

Saferoads Holdings Limited (ASX:SRH) has successfully negotiated a temporary extension of its overdraft facility and a waiver for EBITDA to debt covenant breaches with the support of the Commonwealth Bank of Australia. The company has also initiated the process to solicit offers for the potential sale of its Road Safety Rental division as part of its strategic review. Despite the competitive trading environment and anticipated modest bottom-line losses, Saferoads remains focused on achieving positive EBITDA results. The company aims to address its funding challenges and capitalize on market dynamics through these strategic initiatives.