Acrow (ASX:ACF) Announcement Overview

Acrow Limited (ASX:ACF) has announced the successful expansion of its debt facility with Westpac Banking Corporation by $56 million. This expansion provides the company with approximately $75 million in proforma headroom based on its 30 June 2024 debt position. Additionally, Acrow reported a quarterly record of $24.8 million in secured new hire contracts for Q1 FY25, marking a 51% increase from the previous corresponding period.

Executive Commentary on Expansion and Performance

We are excited about the expanded Westpac facility. We have been very clear on our strategy to grow our Industrial Access business nationally, both organically and via targeted acquisitions. This new debt structure strengthens our balance sheet and provides cashflow flexibility, enabling the Company to aggressively pursue non-dilutionary, small to medium sized accretive acquisitions that meet our stringent acquisition metrics and fit within our general acquisition growth strategy. Furthermore, I am extremely pleased with the performance of our sales and engineering teams in converting opportunities from our extensive sales pipeline into secured hire contracts. Our conversion rate has never been stronger. I am also particularly delighted with the success in both our Jumpform and Screens businesses, that are helping to create the foundations for a very strong second half of FY25.

Summary of Acrow (ASX:ACF) Announcement

Acrow Limited (ASX:ACF) has expanded its debt facility with Westpac Banking Corporation by $56 million, providing the company with increased financial flexibility to pursue non-dilutionary, small to medium acquisitions in line with its acquisition growth strategy. The expanded debt facility includes an additional dedicated acquisition facility, increased equipment finance facility, and flexible option facility, all provided at competitive commercial rates with fewer and less onerous covenants. Additionally, the company reported a quarterly record of $24.8 million in secured new hire contracts for Q1 FY25, indicating a very strong medium-term outlook for the business. CEO Steven Boland expressed excitement about the expanded facility and highlighted the success in securing hire contracts, particularly in the Jumpform and Screens businesses, setting the stage for a robust second half of FY25.