Baldwins in talks after loan breach

CRANES group Baldwins Industrial Services has breached a banking covenant and is in discussions with backers to renegotiate financing terms on its £86m of debt.

The group has scrapped its interim dividend after its American operations ran into trouble and slashed margins across the group.

Pre-tax profits for the half-year to 30 September dived to £500,000 from £2.5m despite an 18% leap in revenues to £41m.

Baldwins is now reviewing its overall strategy, trying to renegotiate facilities with its bankers and is in talks with providers of asset finance. HSBC is the group's primary banker.

The group has assets of just £38m. Despite good sales growth, its American business was hit by costs associated with a large number of new crane breakdowns and two depots in the US have already been closed.

Baldwins shares fell 9p to 27 1/2p on the news.