Fletchers poised for next stage of growth following refinancing

Fletchers Group has agreed on a new refinancing deal which will equip the business for the next stage of growth.

Chief financial officer Alex Lynch said the deal will support Fletchers in driving growth in the medium term as the business extends its position as a leader in serious injury and clinical negligence.

She said: “Our sights are set firmly on reaching our medium-term target of achieving £150m in revenue with a team of 1,500 colleagues, and this new agreement, signed with Pemberton, is an important step in that direction.”

Pemberton is a European asset manager specialising in private debt and backed by Legal & General. Alex explained that Pemberton is providing a long-term loan which Fletchers will use to settle current bank, vendor and acquisition loans.

She added, “As well as consolidating all our debt under one group facility, Pemberton will also provide an acquisition fund to support our inorganic growth strategy and enable us to move quickly to fulfil our pipeline opportunities.”

She said Fletchers will continue to partner with RBS, the group’s bankers for more than 20 years, who will provide working capital via a revolving credit facility to support their continuing investment in growing their WIP book.

A vote of confidence

Alex said the new arrangement was a vote of confidence in Fletchers Group, its track record to date, its forward strategy and its people and culture.

“When Sun European affiliates invested in Fletchers in October 2021, we had approximately 450 people and revenue of £34m. With Blume, Cycle SOS, Minton Morill and SIL in the Group portfolio, we will hire our 1,000th colleague and break £100m in revenues by the end of this financial year.”

“The process has given us a great opportunity to sell the merits of our industry in general and Fletchers Group in particular, and we are thrilled to have Pemberton on board for the next phase.”

Cassandra Fahy, managing director – origination, of Pemberton said: “Fletchers Group made a compelling investment case and we are delighted to support Peter [Haden], Alex and the rest of the team achieve their ambitious plans.”

She added: “Fletchers has delivered impressive growth over a period of regulatory and market change and is now well placed to capitalise on their leading position in a market where technology and scale are key differentiators.”

Rothschild, PWC, EY and Addleshaw Goddard advised Fletchers on the transaction.

Image: Provided by Certus Ltd.

Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.