£10m financing deal signed at technical services business
CASTLEFORD-BASED firm Premier Technical Services has agreed a £10m financing facility following a record year.
PTSG, which provides services such as electrical testing and high-level cleaning, has agreed a £10m revolving credit facility (an increase of £3m) and £4m overdraft facility with HSBC.
The company last week reported record sales for the year following six acquisitions.
It floated on the Alternative Investment Market of the London Stock Exchange in February 2016, and for the 12 months to December 2015, group revenue rose 43% to £25.8m .
John Foley, chairman of PTSG, said: “The increase in our banking facilities reflects the increased scale and profitability of the Group. PTSG’s core borrowings are its net cash or overdraft position plus drawings under the RCF, which at 31 December 2015 amounted in total to £6.3m. Deferred consideration and loan notes issued in relation to acquisitions are in the main a function of profitability within the acquired businesses and can usually be settled in cash or in shares at PTSG’s option.
“At this stage in the Group’s development, the Board is comfortable with core borrowings of up to 1.75 times adjusted EBITDA and our increased facilities provide substantial headroom to continue to grow both organically and through carefully selected acquisitions.”
