New deal with lenders to save Grafton €3.6m a year
BUILDERS merchanting and DIY group Grafton has signed a new deal with lenders that will save it £3m (€3.6) a year.
The firm said it has agreed five-year £460m revolving credit facilities with its relationship banks, which have a maturity date of May 2019.
"The refinancing takes advantage of improved lending conditions and will lead to annualised finance charge savings based on current drawings of circa £3m per annum," said Grafton, which has operations in the UK, Ireland and Belgium.
"The increased facilities provide Grafton with additional headroom as the group continues to execute its growth strategy."
Analysts said the deal will give the company scope for growth and will add 1.3p earnings per share (eps) on a full year's basis - just over 3.5pc - to 2015 forecasts.
Davy stockbrokers said this will sustain the positive earnings momentum the group is enjoying.
Forecast upgrades and the recent sell-off imply that the stock's valuation is looking increasingly attractive, it added.