RedCat completes £61m refinancing
The deal comprises debt funding from Barclays Bank and further equity from the group’s existing investors, including funds managed by Oaktree Capital Management.
RedCat said: “The deal demonstrates a vote of confidence in the strategy, team and future success of the business.”
RedCat Group CEO Richard Lewis said: “This is a hugely positive step forward for the business, with backing from a major high street bank, alongside further support from our partners at Oaktree.
“The refinancing provides the business with the stability required to invest for growth.”
Look to the future
He continued: “The deal will enable the team to build on the successes we are already seeing with recent investments in our portfolio across both RedCat and the Coaching Inn Group while enabling us to look to the future with even greater confidence and excitement.”
In April, RedCat posted a pre-tax loss of £31m for the 52 weeks to 3 April 2024.
The loss came after the group announced a £3.2m pre-tax loss reported for the 64-week period ended 3 April 2022.
Meanwhile, turnover at RedCat Group was £120.5m (£62.8m: 2022), gross profit was £89.2m (£47.2m: 2022) and adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation) stood at £3.6m (£7.2m: 2022).
During the period, RedCat acquired 17 sites and closed three, and anticipated improved trading across the portfolio, despite economic conditions.
Seven sites disposed
It continued to invest in its estate, which included the refurbishment of four sites during the financial year.
It disposed of seven smaller sites since the end of that financial period, taking the total number to 114.
RedCat director Michael Rothwell said: “In the context of the challenging economic backdrop, the directors are satisfied with the results of the group.
“The group has continued to seek to acquire good-quality, freehold assets and has grown significantly over the period, deploying further targeted capital investment to enhance the quality and earnings potential of the portfolio.”
Earlier in April, administrators were appointed to a subsidiary company of the group called Red Cat Leased Pubs Limited (RCLP), which was operating 10 sites across the UK at the time.
