Coffee machine provider Expresso Plus is at risk of collapse after a cyberattack wiped financial records causing a breach of its banking covenants.
The company is a distributor of Lavazza, Nescafé and Pret Express drinks machines to UK shops, with nearly 700 customers.
Financial results for parent company Montagu Group for 15 months ending June 2021 reveal a malware attack in November 2020 wiped much of its financial records.
The company said the Covid-19 pandemic and the attack caused a £473.5k annual loss and a 42% drop in turnover to £5.5m.
The attack put the group in continued breach of banking covenants, leaving it dependent on the “support” of its lender.
The company said this “casts significant doubt” on its “ability to continue as a going concern”.
There was also uncertainty if its £1.39m in trade debts could be recovered. Stress tests showed it would need more funding if it recovered less than 14% of historic debts.
Auditor Ernst & Young said it was unable to verify debt recoverability.
The company continues to trade and make payments to lenders.
Montagu Group told Better Retailing it was working closely with its banking partners and has “continued to trade well”. The company added: “We are confident Montagu Group is in a position to continue to trade successfully.”
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