Hayward Tyler encouraged by increasing momentum
14 November 2016, 14:59
Source – SMW
Specialist engineering group Hayward Tyler is encouraged by the increasing momentum it is seeing in terms of its sales pipeline converting into order intake.
It says this is across both the Hayward Tyler and Peter Brotherhood businesses since the interim period end.
The group says that Peter Brotherhood, which HTG has relaunched since its acquisition in October 2015, has continued to develop and grow its pipeline and begun to convert this into contract wins.
Additionally there has been a recent increase in activity levels at Hayward Tyler, combined with some strategically important contract wins which will also contribute towards delivering the “book and fill” requirement for the current financial year.
HTG is also pleased to announce that it has reached agreement with its principal bank, Royal Bank of Scotland, to amend and restate the Company’s multicurrency committed borrowing facilities agreement.
The main changes are a short-term increase in the revolving credit facility of £3.0m to £11.9m and a relaxation of quarterly financial covenants, which will now be measured from 31 March 2017 onwards, to give the Group the financial flexibility to deliver the expected improvement in trading of the business in 2H2017.
HTG established a secured loan note programme of £3.0m in 2015 to provide a diversified source of funding. The company is seeking to increase the loan note programme, initially by £3.0m, in order to maintain a more appropriate maturity profile on the company’s borrowings and repay £3.0m of short-term borrowings due under the RCF by 31 January 2017.
The RCF was used to purchase fixed assets for the centre of excellence and, accordingly, the new issue under the loan note programme enables the Group to match long-term assets with medium to long-term debt.
HTG intends to increase the overall loan note programme from £3.0m to £10.0m, leaving £4.0m already authorised, but not issued, available for further growth opportunities.
Chief executive Ewan Lloyd-Baker said: “We are encouraged by the increasing momentum we are seeing in terms of our sales pipeline converting into order intake across both the Hayward Tyler and Peter Brotherhood businesses since the interim period end. A combination of our growing order book and the continuing strong support provided to the Group by our principal bank, Royal Bank of Scotland, provides a solid foundation on which to deliver against management’s expectations both this year and beyond.”