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UK: St Austell Brewery gets GBP40m expansion and debt fund

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St Austell Brewery has secured a GBP40m (US$63.4m) funding package to both service debt and invest in expansion, potentially via acquisitions.

The Cornwall-based Tribute ale brewer said today (28 February) that it has agreed the funding facility with the Royal Bank of Scotland (RBS) and Barclays. St Austell owns 174 pubs and has seen strong success with the Tribute brand.

Both banks will each provide GBP12.5m revolving credit facilities to St Austell. RBS will also provide a GBP10m fixed-term loan, while Barclays will offer a GBP5m working capital facility. 

"The firm has grown both organically and via selective acquisitions, and will use the new banking facility to explore further growth opportunities," the brewer said today (28 February). "Focused primarily on the south west, the firm is keen to expand its estate."

According to accounts filed with Companies House, the firm's GBP5m revolving working capital facility was due for renewal in June 2012, as was a GBP10m revolving credit facility. The new deals, then, suggest that the brewer has access to more funds than previously.

The most recent full-year figures for the company, covering the 12 months to the end of December 2010, show that net debt increased by 19% on the previous year, to GBP21.9m. Net sales dipped by 0.4% to GBP92.9m, but net profits jumped by 45% to GBP5.7m, partially inflated by impairment charges on fixed assets in the prior year. Operating profits rose by 6%, excluding one-off items.


Sectors: Beer & cider

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