Abbeycrest seals deal with banks

LEEDS-based jewellery firm Abbeycrest today revealed that extended facilities have been agreed with its banking partners in the UK and Thailand.

The company said that these agreements would help it to focus on growth.

Burdale, the group’s senior lender, has agreed to extend the renewal date of the group’s UK bank facility to March 9 2014 and to re-set the associated covenants.

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As a result of a transfer in the group’s working capital requirements from the UK to Thailand, Abbeycrest has also taken the opportunity to halve its UK facility limit with Burdale from £8m to £4m. All other principal terms and conditions remain unchanged.

The company’s subsidiary, Abbeycrest Thailand, has also agreed an increase of £3m in its seasonal working capital facilities with its long-standing finance provider, SCB.

This comprises an increase of £2.6m in its invoice finance facility and an extra short term loan of £0.4m to facilitate the consolidation of Abbeycrest’s Hong Kong activities into ATL.

In a statement, the company said: “The extended SCB facilities, which now total £8.8m, cover the expected peak working capital requirements of the August to December 2011 period and are renewable annually. All other principal terms and conditions remain unchanged.”

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Simon Ashton, executive chairman of Abbeycrest, said: “I am pleased that the group has been able to agree revised and extended bank facilities with our banking partners.

“This will now allow us to focus on top-line growth as we continue to develop our design-led, branded jewellery ranges.”

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