North East vehicle hire firm Northgate announced it has completed a refinance package worth £557m as it explores options for its growth.
The Darlington-based business rents vans across the 海角视频 and in Spain, and recently brought in Avril Palmer-Baunack as non-exective chair, who set a strategic review of growth options for the business in motion shortly after her arrival.
Now, ahead of the firm’s annual general meeting, the firm revealed it has secured a new banking package with £557.5m, including a £477.5m multi-currency revolving credit facility and an £80m term loan.
A €100m private placement also remains in place, it said, and that the loan is “underpinned by improved commercial terms which allow further funding for growth”.
Earlier this year Northgate came under fire from major shareholder Crystal Amber Fund, an activist investment fund, which called for the then chairman Andrew Page to be sacked, claiming the firm has performed poorly under his tenure.
Last month, Mrs Palmer-Baunack – who is also executive chairman of Webuyanycar.com owner BCA Marketplace – was appointed.
In the latest stock market announcement, the firm said the new chair – who is also executive chairman of Webuyanycar.com owner BCA Marketplace – has been working with the company’s chief executive officer and chief finance officer on a review of the growth options for the business.
In a statement ahead of the meeting, the firm said: “The review is ongoing, and an update will be provided in due course.
Most Read
“Importantly the review is focused on clarifying the significant intrinsic value of Northgate - both in its core businesses and in the strong potential of strategic actions that will grow the business in both scale and value.”
Shareholders were also being asked to approve a final dividend of 12.1 pence per share, which will be paid on September 27.
The board also said it was pleased to report that the company’s overall financial performance is in line with management expectations.
It added: “However, given the current ongoing Brexit-related political and economic uncertainty in the 海角视频, which could have an impact on various market sectors such as construction and retail, the board believes it is right to remain cautious in its outlook.
“The board remains convinced in the intrinsic value of Northgate’s underlying strong market positions, and focused on the strategic opportunities to grow shareholder value.”