Go Outdoors agrees £33m refinancing deal for growth
Sheffield-based outdoor retailer Go Outdoors has secured a £33m refinancing deal with Barclays to support growth plans.
The financing, Go Outdoors’ largest to date, will support further store expansion, continued development of its multi-channel operation and the targeted refurbishment of existing stores.
Chris Matthews, CEO of Go Outdoors, said: “Our agreement with Barclays will enable us to accelerate our growth plans for the business. We see significant opportunities within the UK, both in stores and in multichannel.”
“In the last twelve months we have transformed our multi-channel capabilities, expanded our own-brand portfolio, opened new stores and created jobs whilst reducing costs and streamlining our processes. We have a clear objective of market leadership built on an unwavering commitment to serving our customers.”
Pete Wilmer, Barclays corporate relationship director said: “Go Outdoors has assembled a first class management team and delivered a robust performance throughout the challenges of the recession. The bespoke funding package will provide the management team with the confidence and the platform to continue investing in the significant opportunities which exist for growth.”
The financing deal has been agreed for a three-year term with an option to extend to Autumn 2018.
Go Outdoors recently announced its audited 2012/13 financial results. The business achieved record turnover of £171 million, an increase of 19% on the previous year. Gross sales reached £200 million for the first time.
The business achieved EBITDA of £9.4 million, up more than 10% from £8.5 million in the previous year, whilst continuing to invest in growth, and recorded a profit before tax of £1.5 million.
Go Outdoors also saw strong growth in multi-channel sales, with an encouraging performance from click and collect.
Four new stores were added in the year. Three more openings have taken place this year, including a flagship store in Milton Keynes, with more openings in the pipeline.
Stephen Ingram from BHP Corporate Finance advised Go Outdoors on the refinancing. DLA Piper were legal advisors to Go Outdoors.
This was posted in Bdaily's Members' News section by Tom Keighley .
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