Datrontech Group's principle credit insurer, Euro Trade Indemnity, has reconsidered its exposures following the company's poor half-year results and a further reshuffle of its management.
Datrontech lost £1.1m on turnover of £82.4m in its half year to 28 September. The distributor's loss was smaller than last year's £3.4m, but its turnover was down from £105.8m.
Although chairman Ray Way claimed that the firm "continues to enjoy the support from its bankers" and had "reduced costs and increased gross margins", a source familiar with the company believed its debt may raise concern.
John Lowry, chief executive at Datrontech, did not deny that a number of areas of the company were under review. "I am in meetings this week specifically to reduce some credit limits in order to raise others. There is a lot of work to do here. We are re-evaluating the entire way the company does business," he said.
The company's latest round of management changes saw chief operating officer Alan Mack leaving the company and co-founder Ian Boyle moving to a non-executive role.
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