UK firm Facilities by ADF has agreed a new £5m revolving credit facility (RCF) with HSBC UK.

The facility has a three-year term and will replace the group’s existing £1m overdraft facility.

Facilities by ADF, based in Surrey, provides premium serviced production facilities to the UK film and high-end television industry

The AIM listed company also said that as part of an exercise to improve its capital efficiency, it has raised an additional £650,000 through a 60-month asset financing facility, secured against certain existing assets within the ADF fleet.

Facilities by ADF has also extended a number of existing finance leases for a further 24 months, which it estimated will result in an annualised cash flow benefit of around £800,000.

A spokesperson from Facilities by ADF said: “The RCF, the asset financing and lease extensions provide the group with significantly enhanced financial flexibility in support of growth initiatives and working capital requirements. The group continues to target operating leverage in the range 1-1.5 times adjusted earnings through the business cycle.”

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