£120m refinancing brightens manufacturer’s growth prospects
Lighting manufacturer Luceco has secured a £120m financing deal which will enable the company to invest in growth opportunities.
The Telford-based company last month reported sales had risen by half, to £108m, while profits doubled to nearly £20m.
Its refinancing replaces a £50m asset-backed arrangement with an initial £80m of committed lending. There is the potential to expand by a further £40m with an accordion facility.
The deal with HSBC, NatWest, Bank of China and Bank of Ireland, is at the same price as its existing facilities and is in place until at least September 2024, with an option to extend for up to two years.
Matt Webb, Luceco’s chief financial officer, said: “This new facility adds greater support and diversity to Luceco’s funding arrangements and allows us to access our substantially increased borrowing capacity to invest in future growth.
“I am delighted to welcome new lenders to the Group and look forward to working with our entire banking syndicate in support of the Group’s long-term ambitions.”
The manufacturer supplies the trade and retailers with lighting and power prodicts in three main ares – wiring accessories under the British General brand, LED lighting products as Luceco and Kingfisher Lighting, and portable power products such as leads and chargers through its Masterplug brand.
Luceco’s strong performance has been reflected in its share price. Despite a recent correction – its shares have fallen by one-third over the past month – its current £520m market value is three times higher than in the pre-pandemic winter of 2019-20.
