World Cup woes cause cash crisis at roofing firm

Grant Prior 6 years ago
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Roofing specialist Hightex is looking for short-term finance to enable it to keep trading following a string of problems on World Cup stadium work in Brazil.

A Stock Exchange announcement today confirmed the firm has been forced to suspend its shares and will have to delay its latest results announcement.

Hightex won a string of contracts in Brazil to install its iconic cable supported membrane roofs on World Cup stadiums.

Installation of the roof of the Maracana Stadium in Rio de Janeiro was completed in May

But the installation of the membrane roof on two other Brazilian stadia – Estadio Beira-Rio in Porto Alegre and Arena Das Dunas, Natal – was delayed during July and August because of late completion of steel works.

Hightex said it has “experienced difficulty” in obtaining the relevant financial information on these three significant contracts from its Brazilian joint venture, SEPA Hightex Coberturas Ltda,

It added: “It will not be possible to clarify the position in the immediate future and thus the Company is unable to meet its reporting timetable in relation to the announcement of its half yearly report for the six months ended 30 June 2013.

“Consequently, the Company’s shares have been suspended from trading on AIM from 7.30am this morning.”

Delays in payments from Brazil have also triggered a cash-flow crisis.

Hightex said: “In addition, as a result of delays in substantial cash receipts due to it from contracts in Brazil and minor delays from other projects the Company finds itself with very limited cash resources and without additional funding or significant receipts may not be able to continue to trade.

“Hightex is in active discussions with a number of potential providers of short term finance and continues to take all appropriate actions to recover amounts due in respect of Brazilian projects.

“The Company’s ordinary shares will be readmitted to trading on AIM on publication of its half yearly report and a further announcement will be made in due course.”

 

 

 

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