RCF, Asset Financing and Lease Extensions
Facilities by ADF plc has secured a new £5.0 million revolving credit facility with HSBC UK Bank plc, replacing its previous £1.0 million overdraft, and has raised an additional £0.65 million through a 60-month asset financing facility. Furthermore, the company has extended existing finance leases for 24 months, which is projected to provide an annualised cash flow benefit of approximately £0.8 million. These measures significantly enhance the Group's financial flexibility to support growth and working capital needs, while the company maintains its target for operating leverage between 1.0 and 1.5 times adjusted EBITDA.
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Facilities by ADF plc (AIM:ADF), the leading provider of premium serviced production facilities to the UK film and high-end television industry ("HETV"), announces that it has entered into a new £5.0 million revolving credit facility ("RCF") with HSBC UK Bank plc. The RCF has a three-year term and replaces the Group's existing £1.0 million overdraft facility.
In addition, and as part of an exercise to improve the Group's capital efficiency, the Group has raised an additional £0.65 million through a 60 month asset financing facility, secured against certain existing assets within the ADF fleet (the "Asset Financing"), and extended a number of existing finance leases for a further 24 months (the "Lease Extensions"). The Lease Extensions are expected to result in an annualised cash flow benefit of c.£0.8 million.
The RCF, the Asset Financing and Lease Extensions provide the Group with significantly enhanced financial flexibility in support of growth initiatives and working capital requirements. The Group continues to target operating leverage in the range 1.0 - 1.5x adjusted EBITDA through the business cycle.
| Singer Capital Markets (Nomad and Broker) James Moat Charles Leigh-Pemberton Jalini Kalaravy | Tel: +44 (0)20 7496 3000 |
| Alma Strategic Communications Josh Royston Hannah Campbell Sarah Peters | Tel: +44 (0)20 3405 0205 facilitiesbyadf@almastrategic.com |
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