Redhall secures £2m from shareholders

Redhall secures £2m from shareholders

Wakefield-based manufacturing and specialist services business Redhall Group has secured £2m short-term financing facilities from two of its major shareholders.

The company has greed terms with Lombard Odier Investment Management (LOIM) and client funds managed by Downing for the new facilities.

The money will be used to fund unusually high, short term working capital balances, which are principally being driven by two major contracts.

The shareholder facilities are subordinated to the Redhall's existing facilities with HSBC UK.

Martyn Everett, Redhall's chairman, said: "The board is grateful for the continued support of LOIM, Downing and HSBC, believing it signifies their confidence in the company's ongoing prospects.

"Market conditions remain encouraging in the majority of the company's core sectors and we see a strong pipeline of opportunities. A further update on trading will be included in the company's preliminary results for the year ended 30 September 2018, which, as previously announced, will be released on 31 January 2019."

GCA Altium is Redhall's nominated adviser and WH Ireland is the broker.