In Brief: More debt for Preston, Arthro and Baqus optimistic

PRESTON North End has borrowed a further £900,000 from a fund owned by the Lancashire billionaire Trevor Hemmings.

The football club said the money would be spent on its working capital requirements. Preston has loan agreements with Guild Ventures, which owns 28% of the club, and the Friends of Preston North End.

The latest loan came from Guild Ventures and took Preston’s total borrowing from the two organisations to £8.3m. The lion’s share has come from Guild which is controlled by Mr Hemmings, the leisure industry entrepreneur and owner of Blackpool Tower.  

Preston has agreed to an interest rate of 3% above the inter bank rate on the loans which must be repaid by 2010.

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MACCLESFIELD orthopaedic specialist Arthro Kinetics is hoping to raise £450,000 to secure its future, which could lie outside the UK.

The business, which makes biological implants that help regenerate joints, has had a torrid time in recent months as it has grappled with cashflow problems.

On several occasions it has warned it may be forced to close and last month it announced it was delisting from the Alternative Investment Market to save money.

Now it expects to raise at least £450,000 from a combination of its Japanese joint venture partner, Polaris Rx Corporation and funds controlled by Heidelberg Innovation.

Arthro said the new investment, together with existing cash balances, will support the group beyond 2010. But the cash will go straight to its Austrian subsidiary in exchange for a 16% stake. This business is expected to be Arthro’s sole trading company “in due course”.

Chief executive Jason Loveridge said: “This is clearly a very important achievement for Arthro Kinetics, which, in the current difficult market conditions underlines the potential of the company. This additional finance will enable us to successfully complete our restructuring program in early 2009.”

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BAQUS, the quantity surveying group based in Manchester and London, is confident after securing “a steady flow” of new projects.

At the group’s annual meeting chairman Roger Knowles said the business was also eyeing acquisition targets.

He said: “The directors believe that current market conditions and the Group’s strong cash position will provide opportunities for good value acquisitions and they continue to evaluate potential targets.”