Finsbury Food Group has refinanced its debt facility with an eye to exploring future growth opportunities.
The business, a leading supplier of own-label and licensed bakery products to retail and foodservice operators, has agreed a £45m revolving credit facility provided by a group of three banks: HSBC, Rabo Bank and RBS.
Finsbury said the new facility is on improved terms and includes scope to be increased by up to a further £45m. The company added that this gave it increased capacity to explore future growth opportunities and support its long-term investment strategy.
"We are delighted with this successful outcome and this revised facility, with significant headroom, gives us greater flexibility and means we are better equipped to deliver growth and shareholder value going forward,” said Finsbury Food Group finance director Steve Boyd.
In its latest half-year results, to the end of 2017, Finsbury reported a 2.5% rise in revenue. Turnover at its UK bakery division rose 3.2% over the period, while sales from its 50%-owned overseas division fell 2.1%.
At the time, Finsbury said the results demonstrated the “positive impact” of its strategic diversification, and that its performance was in line with management expectations.
Last year, Finsbury announced the closure of its premium baked goods business Grain D’Or, which employed 250 staff. The company said the decision to close the operation, which is based in Brent, London, was because it has been “historically loss-making”.