The refinancing comes in the form of invoice discounting, loans and asset finance with capital to be used for the day to day running of the business and new product development. It is hoped the additional capital will help to fund future growth.
Speaking to letsrecycle.com today (June 4), Jonathan Straight, chief executive of the Leeds-based firm, said it would put the business in a stronger position.
He said: This new arrangement consolidates pretty much all of the previous arrangements which were due to expire We needed to renew that and nominated a three year facility so our funding needs are stable and are known and predictable for the foreseeable future which is a very good thing and puts the group in a stronger position than it was before.
Straights share price has continued to climb over the last month to 36.25 pence, recovering from a 52-week low of 21 pence on May 2 2013. According to its last financial results, for the half year to June 2012, the Group was working hard to reduce net debt which then sat at 3.2 million. However, sales were up by 11.4%.
Investment
Straight produces waste and recycling containers made out of plastic and metal as well as water butts. At least two thirds of these products are produced at its facility in Hull which is equipped with twenty injection moulding machines and three blow moulding machines.
Commenting on the plans for the money, Mr Straight said it would be spent on developing new products rather than the manufacturing plant. He said: There is a constant demand for new equipment in our factory and we continue to invest in getting it to the best in its class. Much of the machinery we would buy in would be financed itself by a separate agreement. Really our money is spent on product development and tooling.
We will be looking to continue our programme in investing in new products and developments and we have quite an ambitious capital investment programme which requires us to deliver something new and interesting probably every six months.
Mr Straight added that there is no shortage of ideas for new products and Straight has a considerable database which it will be working from to develop these. Previous innovations by Straight to hit the market include the 3BoxStack (see letsrecycle.com story).
Acquisitions
The Hull manufacturing facility was purchased under a 2.9 million acquisition of injection moulding firm Dyro Holdings, which traded as Powell Plastics (see letsrecycle.com story). The move followed less than six months after Straight purchased the operations of Greek container manufacturer Helesi.
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Mr Straight added that while the firm aims to grow through naturally and through acquisitions at present there are no plans for any new acquisitions in the near future, but he would not rule it out completely.
I dont have any acquisition projects on the go at the moment although we are constantly offered business to look at and pretty much at any point in time we are looking at one or more opportunities so it is definitely something we would do.
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