Shares in James Cropper plc (AIM:CRPR) jumped 11.4% to 390p after the advanced materials group refinanced its debt facilities.
A new £15 million invoice discounting facility has been secured, with an extension to the maturity of part of its borrowings, as the AIM-listed group looks to improve liquidity and support its growth plans.
The new invoice discounting facility is committed for at least three years and is intended to provide more flexible working capital funding.
As part of the refinancing, the company will repay £7.1 million of its existing UK bank loan using cash resources and drawings under the new facility. The remaining balance of the loan will be repaid in reduced quarterly instalments through to March 2030.
Cropper's also agreed a 12-month extension to its US bank loan, with the final repayment of $3.2 million now due in December 2027.
The refinancing is expected to improve cash flow and balance sheet flexibility, with net debt standing at less than one times adjusted EBITDA as at 28 March.
Chief financial officer Andrew Goody said: "The refinancing materially improves our liquidity and financial flexibility.
"By improving access to committed working capital funding and extending the maturity profile of our debt, the new arrangements provide greater headroom to support both operational requirements and strategic growth initiatives."
Alongside the refinancing, the company will make a one-off £0.6 million contribution to its defined benefit pension schemes and has agreed a reduction of £0.35 million in previously scheduled pension contributions through to September 2027.
