Hargreaves Services plc
Business: Hargreaves Services plc is a leading supplier of products and services to the energy, mineral and waste sectors.
Deal: A new debt package, lead by the Newcastle office of BTG McInnes, sees Hargreaves’ existing debt provider, The Royal Bank of Scotland, joined by four additional banking partners (Lloyds Banking Group, HSBC, Yorkshire Bank and Santander). The deal provides committed facilities of £115 million in a three-year, multi-bank offering, which will support further growth for the Group. Revenue for the year ended 31 May 2009 was £503.1 million with underlying profit before tax of £28.6 million delivering impressive growth of 24.3% and 50.2% respectively.
Our Role: Hargreaves approached BTG McInnes Corporate Finance to assist with arranging its new debt facilities due to their strategic importance and the challenging market environment. The willingness of the five banking partners to provide additional facilities to the Group speaks volumes for the quality of Hargreaves’ business model and management team. The funding provides committed lines for further organic growth, as well as having additional facilities to support strategic acquisitions. The new banking arrangements will provide the Group with significant flexibility and are scaleable.
“We are pleased to have new finance arrangements in place. Given the current economic environment, we believe the securing of this facility is testament to the strength of the business and its prospects for further progress. BTG McInnes worked well alongside my team to ensure the debt deal was structured and delivered on time.”
Iain Cockburn, Group Finance Director, Hargreaves Services plc