Redstone has claimed its new £15.5m revolving credit facility (RCF) speaks to the confidence its banking partners have in the services company's prospects.
The Kidlington-based firm has replaced its existing loan and overdraft agreements with the three-year RCF deal with Barclays. This effectively represents an 18-month extension of the previous facility. The new arrangement also caters for up to £2.4m of additional funding on commercial terms.
Following the extensive restructuring of the business between 2009 and 2011, Redstone claims today's announcement "marks the return to relationship banking". According to a statement to the markets, the agreement will provide "additional working capital headroom, rather than increase core borrowing". The integrator added that it "continues to reduce total borrowings".
Redstone chief executive Tony Weaver said: "We are delighted to have increased and extended our facilities with Barclays. The new facility underlines the strength of our banking relationship, and provides substantive evidence of confidence in our prospects and strategy."
Redstone's share price has been feeling the pinch in recent months, having fallen by more than half. In September of last year it rose as high as 1.6p, but has spent the past month bouncing around either side of the 0.8p mark. The firm's current market capitalisation is a little less than £25m.
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