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LONDON - Walker Crips Group plc has secured a £5 million working capital loan drawdown facility from its largest shareholder, Phillip Brokerage Pte Ltd (PhillipCapital), the investment management firm announced Thursday.
The two-year facility, which runs from July 31, 2025, will charge interest at 9.07% per annum only on amounts drawn down, with a one-off facility fee of 1% (£50,000). The loan can be repaid at any time without penalty.
Under the terms of the agreement, if any amount remains drawn down by January 31, 2026, Walker Crips will be required to initiate a rights issue to repay the facility. The company stated it intends to repay any drawn amounts before this deadline.
Walker Crips indicated the funding is needed following what it described as "an especially challenging last financial year" ending March 31, 2025. The company cited substantial investment in legal and consulting services, as well as recruitment of additional compliance personnel as factors necessitating the financial reinforcement.
The transaction constitutes a related party transaction under UK Listing Rules as PhillipCapital and its connected parties hold 12,359,803 shares in Walker Crips, representing 29.03% of the company’s issued share capital.
The board of Walker Crips, excluding directors Hua Min Lim and Linus Lim, confirmed it views the facility as "fair and reasonable" for shareholders, based on advice from Singer Capital Markets, the company’s sponsor for the transaction.
According to the press release statement, Jo Welman, Chairman of Walker Crips, said the availability of this loan is "instrumental" as without it, the group would "lack the capacity to implement essential changes and invest in the growth strategies required."
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