Engineering consultancy WYG has signed off a new £25m multi-currency revolving credit facility with HSBC, which was flagged at the time of the Leeds-based group’s results last month.
Analysts welcomed the news, saying it will support the group’s expansion plans.
Nick Spoliar at WH Ireland said: “We see in this a further catalyst for growth as highlighted by the company – with organic growth already strongly double digit and the company’s European operations expected to bounce back strongly as we move into 2015/2016. We retain our ‘Buy’ recommenda- tion.”
The new revolving credit facility, which replaces WYG’s existing trade finance facility with Santander Bank, extends committed facilities to WYG for five years.
Paul Hamer, WYG‘s CEO said: “We are delighted to have secured this new facility with HSBC which not only provides WYG with additional working capital headroom but, more importantly, can be used as a catalyst to accelerate growth, both organic and acquisitive.”
Wayne Shadlock, relationship director at HSBC said: “We have a strong appetite to support ambitious businesses, and WYG is an international business looking to grow. We are pleased they have chosen us to be part of this exciting period, helping them take forward their growth plans.”
Last month, WYG cheered shareholders with the news of a record order book and the decision to remain independent following a four-month review that concluded its standalone growth strategy will deliver the best value for shareholders.
The group had been approached by several bidders.