Boost for Discover as bank facilities renewed

The East Yorkshire-based firm said it has renewed its banking facilities worth a total 16m with the Royal Bank of Scotland.

The firm last year narrowly avoided administration by restructuring its debts via a company voluntary arrangement.

Discover said the market has benefited from a normal seasonal uplift in leisure vehicles and accessories over the spring and summer.

But despite this, the impact on the group has been "variable".

The market saw trade sales of new touring caravans grow by 23 per cent between March and June versus the same period in 2009.

However, registrations of higher-priced motor homes were down 17 per cent in this period.

Discover itself sold an "encouraging" two per cent more new and used caravans between March to July compared with a year ago.

It said in a statement: "Trading has therefore remained challenging but, as a result of the further stabilisation of the business since its major restructuring last year and the ongoing focus upon cost control, the group has continued to trade within its finance facilities and its results have been in line with management's expectations."

RBS agreed to a five-year term loan of 8m, secured against the group's five freehold sites.

It also agreed to a three-year 5m asset disposal loan, secured against seven of the group's freehold properties which it no longer trades from.

Discover also sealed a 3m overdraft facility.