LPA Group plc has secured a new £8.75 million revolving credit facility from Arbuthnot Commercial Asset Based Lending, giving the AIM-listed engineering group a larger and more flexible funding base as it continues to reshape the business.
The facility replaces the company’s previous bank loan and overdraft arrangements. It is secured against property and receivables and is intended to provide working capital support while LPA completes a wider restructuring programme.
LPA is moving through a period of operational change, with management working to bring its four divisions into a more unified structure. That process can create longer-term efficiency benefits, but it can also require near-term liquidity. The new facility gives the group more room to manage that transition without relying on its old banking arrangements.
LPA supplies electronic and electro-mechanical systems to customers in transport, aerospace, defence, infrastructure and industrial markets. These are sectors where product reliability, safety and long-term maintenance performance are important. The group’s products are used in demanding environments, which gives the company a specialist position rather than a broad commodity manufacturing profile.
The refinancing also supports management’s wider plan to simplify the business and improve how it presents itself to customers. LPA has been restructuring its operations and refreshing its brand to show the group as one integrated engineering business.
Arbuthnot Banking Group PLC (LON:ARBB), operating as Arbuthnot Latham, offers private and commercial banking products and services in the United Kingdom. Established in 1833, Arbuthnot Banking is headquartered in London, United Kingdom.
