Ambitious claims management company National Accident Helpline today announced a deal to refinance its banking facility.
The increased borrowing with Yorkshire Bank comprises a £25m revolving credit facility which will be used to repay the current £9.4m term loan and replace the existing £5m revolving credit facility.
In an announcement to the London stock exchange, the plc said the money will be used for general business purposes, including working capital of the group and the payment of dividends. The facility matures on 31 December 2021.
The company added: ‘The facility will support the group’s long-term business strategy. The increased [credit facility] meets the immediate needs of the group as well as providing sufficient headroom to allow the business to invest for growth and to fund investment in cases in the personal injury division.’
National Accident Helpline has talked up its attempts in recent years to prepare for the potential reforms affecting the personal injury sector. These include an increase in the small claims limit and capped damages for whiplash injuries.
In July, it set up its own business to handle cases in a joint venture with Bristol and Cardiff firm NewLaw, a subsidiary of Redde plc.
Managing director Simon Trott said the expansion was the first stage of a strategy to increase the company’s share of the PI market, with further alternative business structures in the pipeline.
Meanwhile, Redde plc has reported healthy financial results for the year ending 30 June, with turnover up 25% to £472.3m and profit before taxes up 16% to £40m.
The company bought NewLaw in February 2014 but appeared to attribute its strong performance to new business, in particular rapid growth in credit hire cases. It is also a provider of mobility, incident management solutions and legal services to motorists, car dealerships, fleet owners and the insurance industry.