Chill Factore completes refinancing
CHILL FACTORE, the £30m indoor ski slope next to Peel’s Trafford Centre, has received an extra £1.2m in equity funding from existing investors Bridges Community Ventures and property developer Pemberstone as part of a refinancing exercise.
As revealed by TheBusinessDesk.com earlier this month, the attraction’s backers have put in new equity in a bid to help the firm’s parent company, Extreme Cool Ltd, to reduce its debt pile and provide additional working capital. By its most recent year end of October 31, 2009, the company had net debts of £34m.
Despite this, Chill Factore chief executive Stephen Evans argued that the resort’s visitor numbers and profitability were both continuing to improve.
“The refinancing deal has been concluded after substantial improvements in visitor numbers and the overall performance of the business over the last eighteen months,” said Evans.
“This capital investment is confirmation of our shareholders’ confidence in Chill Factore.”
He added that the resort had enjoyed an “extremely strong” summer and was now preparing for a busy peak winter period.”
Bridges Community Ventures and Worcester-based Pemberstone remain as majority shareholders in the venture. Last year, Extreme Cool achieved a marginal growth in sales to £7.5m (2008: £7.4m) but continuing pre-tax losses of £1.1m. Its liabilities also outweighed its assets by more than £14m.
Stewart Baird, interim Chairman of Chill Factore commented: “We are pleased to see the business on a firm footing and well positioned to embrace future success.”
