Redhall gets £2m short-term funding from major shareholders

The AIM-traded firm said the shareholder facilities would be utilised to fund “unusually high”, short term working capital balances, which were being driven primarily by two of its major contracts.

Its board said it considered that the shareholder facilities were the “most appropriate” method of providing that temporary additional working capital.

The company said that under the terms of the shareholder facility agreements, an additional £1m working capital facility had been made available to it by each of LOIM and Downing for a period of eight months.

Each of the facilities was repayable in full by 1 October, along with an exit fee equal to 12.5% of the facility, with no additional interest payable on the facilities during their term.

“The board is grateful for the continued support of LOIM, Downing and HSBC, believing it signifies their confidence in the company's ongoing prospects,” said Redhall chairman Martyn Everett.

“Market conditions remain encouraging in the majority of the company's core sectors and we see a strong pipeline of opportunities.

“A further update on trading will be included in the company's preliminary results for the year ended 30 September, which, as previously announced, will be released on 31 January.”