Bank deal sparks rally for Courts

SHARES in Courts jumped nearly 14% on news the furniture group has reached agreement with its banks on a £20m increase in credit facilities, to £280m.

Non-executive chairman Leo McKee, appointed in March, has switched to an executive role, reflecting his full-time commitment.

Courts, which slipped into the red last year, also said no final dividend will be paid for the year ended March 2004.

'The board does not anticipate resuming the payment of dividends until the refinancing programme is significantly more advanced and the profitability and financial position of the company is restored,' it said.

The company suffered a pre-tax loss of £34.4m last year against a profit of £11.5m a year earlier. In June, it also said current trading in its UK stores was worse than last year. The shares rose 12p - nearly 14% - to 99 1/2p in the first two hours of trading.

The latest boardroom changes follow the departure of the last of the controlling Cohen family in June. Bruce Cohen, deputy chairman and managing director of overseas businesses left, becoming titular president, while Steven Cohen quit as chief executive.

Today Courts said David Caddy, a non-executive director since July 2003, has become deputy chairman and is designated as senior independent non-executive director.

Jeff Warren, former chief development officer at Bank of Ireland, has also joined the board as an independent director.