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Travis Perkins to reduce its overdraft

Builders merchant group Travis Perkins has announced a new banking facility, which will effectively reduce its overdraft.

Travis Perkins to reduce its overdraft

It has also appointed chief operating officer John Carter as deputy chief executive, as from the beginning of this year.

He is expected to take charge of “a wider group of central functions, including IT and customer development.” The appointment follows recent organizational changes at Travis Perkins, which sees the group’s businesses organised into four divisions: general merchanting, specialist merchanting, plumbing and heating and consumer.

The new banking facility, worth £550m, becomes available in April 2013, when the firm’s current £800m facility runs out.

The banks providing the new facility are led by Barclays Corporate, Lloyds TSB Bank and The Royal Bank of Scotland.

Travis Perkins says that the new agreement – which runs until December 2016 – will “increase the group’s funding costs” in line with the tightening credit market. Those additional costs are likely to hit £4m next year.

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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