1st Nov 2021 10:32
(Alliance News) - SIG PLC on Monday said it is considering a debt note offer and will enter a new financing deal to help boost the firm's "significant progress" made over the last 18 months under its 'return to growth' strategy.
The building materials firm said it has seen strong trading and improved profitability during 2021 to date. In the six months ended June 30, the company significantly narrowed its pretax loss to GBP1.6 million, from a GBP125.4 million loss a year prior. Revenue rose 32% year-on-year to GBP1.11 billion from GBP840.1 million.
The company has previously said its 'return to growth' strategy involves reconnecting with customers at a local level, reinforcing its supplier partnerships and investing in new branches.
"The group maintains a solid financial position, with a supportive lender group, healthy liquidity, and financing facilities that mostly mature in May 2023," SIG said.
It added: "Given the progress made, the board has been exploring options to evolve the group's financing arrangements in order to provide a platform to support its strategic growth ambitions into the medium term."
SIG said it has asked bookrunners to carry out roadshows for a proposed offering of EUR300 million senior secured notes due 2026. The company will use the proceeds to repay its existing private placement notes, repay its existing credit facilities and for general corporate purposes.
Alongside the note offer, SIG said it intends to enter into a new revolving credit facility agreement for up to GBP50.0 million.
Shares in SIG were 2.1% higher in London on Monday at 53.04 pence each.
By Paul McGowan; [email protected]
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