Member Article

Warrington’s Stobart secures £50 million credit facility

Warrington’s infrastructure and support services group, Stobart secures £50 million revolving credit (RCF) facility with Lloyds Bank.

The four-year RCF, which has been provided by Lloyds Bank’s Mid Market and Strategic Finance teams, is more than twice the size of Stobart’s previous banking facility.

Stobart will use the facility for working capital and to develop new projects in its biomass and aviation divisions, both of which have been earmarked as key growth areas for the Group.

Stobart operates across a number of different sectors including aviation, biomass energy, railway maintenance, infrastructure services and property.

The Group demerged its famous Eddie Stobart trucking division last year but retains a minority stake in the business.

Stobart Group’s chief financial officer, Ben Whawell, said: “This new banking facility strengthens our financial position and provides us with a medium-term, flexible capital structure.

“The financing will enable us to continue investing in our key growth areas of aviation and energy.”

Regional director for Lloyds Bank’s strategic finance team in the North, Martin Beckett, said: “Stobart’s management team has made good progress since last year’s restructure.

“They have identified energy and aviation as sectors with potential to deliver significant value to the business and have put together a robust business plan to drive growth in both areas.

“The enlarged facility supports the Group’s operational requirements and provides financial headroom to pursue growth opportunities.

“We are very pleased to welcome Stobart Group to Lloyds Bank and look forward to working with them for many years to come.”

This was posted in Bdaily's Members' News section by Sophia Taha .