Quarto refinances to 'focus on growth'

Quarto has signed a new $20m bank facility, as well as extending $13m in loans it received in 2018 and getting a new $10m loan.

The group announced on 17th February it had signed the multi-currency revolving credit and term loan facility with NatWest Bank and Santander. The facility, which matures on 16th July 2024, replaces a previous facility which was due to expire on 31st July 2021.

In 2018, Quarto secured $13m in loans from some of its largest shareholders and extended its banking facilities to reduce its bank debt.

Now 1010 Printing Limited, a subsidiary of C K Lau's Hong Kong company and Quarto shareholder Lion Rock Group, have agreed to extend the current $13m unsecured and subordinated loans to the group, which were entered into in October 2018, on identical terms.

A further $10m unsecured and subordinated loan to the company on normal commercial terms has also been made by 1010 Printing Limited. These unsecured and subordinated loans are repayable by 31st August 2024.

Quarto Group c.e.o. Polly Powell said: "This is very good news. Quarto now has the combined strengths of NatWest and Santander behind it, with a reduced loan requirement. The facility provides the company with stability and reflects the confidence in Quarto’s exciting plans for the future."

Andy Cumming, chairman, said: "We are delighted to have concluded our refinancing with National Westminster Bank PLC and Santander UK PLC. They have been very supportive of our strategy and continue to recognise the ongoing strength of the business.

“In 2018 the board initiated a strategy to reduce the level of bank facilities, which totalled $80m at the time, and the new facility represents the successful execution of this strategy—a significant achievement for the group. This solid platform will allow the business to move forward and focus on growth."