Thursday, January 26, 2017

News: Maplin taps into finance for growth

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Rotherham-based electronics retailer, Maplin has bagged a new asset-based credit facility to invest in the business.

Wells Fargo Capital Finance UK Limited, part of Wells Fargo & Company announced that it acted as agent and lead arranger for an asset-based credit facility and added that it will be used by Maplin to invest in online capabilities, a new retail store concept and support ongoing working capital needs.

Manvers-based Maplin sells a range of products to tech-savvy hobbyists as well as general consumers and now operates from 217 stores. In store, like-for-like sales were up by 1.4% for Christmas 2016 compare to the festive period last year.

Lindsay Dunsmuir, chief financial officer at Maplin, said: "The refinancing of the business is an important milestone in our transformation project and completing it provides us with the financial resources to deliver our plans. We're delighted with the deal and impressed with the execution skills and delivery from the Wells Fargo team. Throughout the process, they consistently delivered on what they said they would do.

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Steven Chait, managing director and head of EMEA at Wells Fargo Capital Finance, added: "We are pleased with the opportunity to work with a leading speciality retailer such as Maplin. The asset-based credit facility put in place to support the transaction and fund the growth of the businesses demonstrates the increasing capabilities and financial solutions that Wells Fargo Capital Finance can provide its clients."

Online sales continue to grow at Maplin and the retailer said it would accelerate investment in digital, people and stores in 2017. A roll out is expected of a new store format and refreshed branding across the estate, which was first trialled at Cambridge Beehive in November.

Maplin was sold for £85m to new owners, Rutland Partners in 2014. For the financial year to March 19 2016, turnover was £235m, a slight reduction from the £236m recorded in the previous year. EBITDA (earnings before tax) was £12.7m, down from £16.2m.

Maplin website

Images: Maplin


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