Refinancing helps Booths advance its growth strategy

The business, which has stores in Ilkley, Ripon and Settle, plans to add up to eight new stores to its 26-strong portfolio in the north of England.

Two stores are due to open this year, one in Salford and one in Penrith, creating new jobs for the Preston-based firm. It currently employs 3,100 staff, including about 400 in Yorkshire.

Edwin Booth, executive chairman of Booths, said: “To secure the funding needed to build on my family legacy of hard work and ambition is very pleasing indeed.

“Booths has exciting times ahead as we look forward to welcoming many new customers through our doors. Achieving growth capital was critical in enabling us to pursue our strategy and we can now move forward at pace and with confidence.”

Although there are no stores for Yorkshire in the pipeline, finance director John Vandermeer said it was looking at opportunities in the region.

“We have always grown organically and been cautious in terms of our growth strategy,” he said. “Previously we have obtained funds on a store by store basis. Securing these funds will enable us to roll out more stores over the next five years.”

Mr Vandermeer said that while the economy was affecting consumer spending, the size of Booths, compared to its larger supermarket rivals, meant it could react more quickly to market changes.

“It’s challenging,” he said. “But we have got financing in place to grow the business for the next few years.

“The next 12 months will be quite tough on the high street but we are well placed to cope with it.”

The company’s turnover in the year to the end of March 2011 was £270m and it expects the two new store openings to boost the figure in the next year.

Nick Dodd, director leading KPMG’s northern debt advisory business, based in Leeds, advised Booths on its refinancing.

He said: “This deal is a great example of how a quality business can buck the trend of negative news from the retail sector and highlights the fact that there is liquidity in the banking market available to companies with a good credit story.

“It’s always pleasing to play a role in a business’s growth strategy, especially such a renowned family company. Indeed, we are advising a number of privately owned businesses on their approach to accessing finance and a key message is to begin preparation early and prepare like never before.”

The refinancing was provided by Royal Bank of Scotland and Lloyds Banking Group.