Under the current challenged financial situation of the...

Under the current challenged financial situation of the business, there has to be a major concern about staff morale and current trading. It must be impossible to attract and retain good staff, or to hold on to customers in what is at the end of the day a commodity business. A selection of recent social media posts underlines these concerns:

“Customers falling over themselves finding other suppliers at the moment in all sectors” “A long list of stories circulating within the company at the moment”
“Non-payment of salaries is a disastrous step”
“UK staff not being paid in February”
“Staff have to wait until March for wages” “Not being paid”
“We will soon hit rock bottom”
“Rumours being spread”
“Soon won't be much left to trade with”
“Senior management failing to stand up and quash or confirm the stories”

This is bound to translate into poor trading and accelerated cash outflow, making the Board's "expectation" of a further breach of banking covenants into a self-fulfilling prophecy.