Fletchers Group of Bakeries has completed a £22 million refinancing package in order to help it achieve its goals for long-term business growth.

The new banking facility represents an additional £4.5m increase in availability against its previous banking provision, over the next five years.

Fletchers said it would use the facility to maintain its growth and plant development across its Sheffield, Manchester and London sites, "with strong investment strategies" planned, and "targeted new product development in conjunction with major retail and foodservice customers".

Paul Devlin, group finance director, said: "This is a significant step for the business, allowing us to further strengthen our balance sheet and pursue strategic options for the group for the foreseeable future.

"Over the last two years, Fletchers has invested more than £14m in existing facilities and creating new capacity. We have also had to make some hard decisions to rationalise non-profitable parts of the business and facing these difficult challenges has strengthened the company substantially."

In its latest filed accounts, for the year to 30 March 2013, Fletchers Group’s posted a pre-tax profit of £2.8m on sales of £99.1m for the period.

Fletchers recently completed a £1m expansion of its cold storage facilities at its dedicated foodservice business unit Kara, and completed a £4m expansion of its manufacturing facilities at its London based Grain D’Or, before Christmas.