Conviviality Plc shares have been suspended for trading on the Alternative Investment Market (AIM) after the Bargain Booze owner identified an unexpected £30m tax payment due on 29 March.
The company said the £30m tax bill had created a “short-term funding requirement” that may negatively impact its EBITDA range of between £55.3m and £56.4m, recently cut by 20% below market expectations.
Conviviality has hired accountancy firm PwC to assist in its forthcoming discussions with HMRC and its key stakeholders including its lending banks, credit insurers, suppliers and other creditors.
PwC will also determine the potential impact of any resulting funding requirement on the company’s adjusted EBITDA expectation and compliance with its banking covenants.
Following preliminary advice from PwC, the Conviviality board said it expected the short-term funding requirement to be satisfactorily resolved, although admitted “there can be no guarantee”.