- Maggie Beer Holdings (MBH) has repaid a $400,000 loan from its namesake and celebrity television chef Maggie Beer
- The $400,000 loan was arranged in late April to bolster cash reserves, following the onset of the COVID-19 pandemic
- Maggie and her husband Colin Beer advanced the 12-month loan by redeeming a previously acquired $500,000 note and receiving just $100,000 from the company
- However, after reviewing its financial position Maggie Beer Holdings is choosing to the repay the loan entirely just two months after it was originally issued
- Despite the news, Maggie Beer Holdings closed 3.64 per cent in the red at 26.5 cents per share.
Maggie Beer Holdings (MBH) has repaid a $400,000 loan from its namesake and celebrity television chef Maggie Beer.
Formerly known as Longtable Group, the premium food manufacturer recently changed its name after successfully buying out the Maggie Beer product line last year in a multi-tranche cash and share deal valued at $10 million.
The $400,000 loan was arranged in late April, following the onset of the COVID-19 pandemic and its resulting economic fallout. While the majority of the company’s assets appeared unaffected in the early months of the pandemic, the loan was sought to shore up funds during the ensuing market unpredictability.
Maggie and he husband Colin Beer, who are substantial shareholders in the company, advanced the loan by redeeming a $500,000 note acquired during the buyout and receiving just $100,000 in cash. The remaining $400,000 was issued as a 12-month loan to bolstered cash reserves if a pandemic-induced downturn in business did eventuate.
However, after reviewing its financial position the company has chosen to the repay the loan entirely just two months after it was originally issued.
Despite COVID-19’s impact to the hospitality and food service industries, the company’s unaudited full-year net sales are expected to be a 3.5 per cent improvement on the previous year.
The improved figures were due to higher-than anticipated sales in May and June, following a slump in March amid social distancing protocols.
The repayment follows a difficult year for the company, which was forced to downsize its offices late last year, after a series high-level management resignations. Six months later, the company has revealed it now expects to post a positive full-year earnings before interest, tax, depreciation, and amortisation in its pending annual report.
The company’s market performance has shown a similar rebound, moving from 17 cents at the beginning of the year to now trade at 26.5 cents at the most recent close.
Despite the news, Maggie Beer Holdings closed 3.64 per cent in the red at 26.5 per share.