Arbuthnot backs LPA Group with £8.75m facility

Arbuthnot Commercial Asset Based Lending (ACABL) has provided an £8.75 million revolving credit facility to LPA Group plc, strengthening the engineering firm’s financial position as it pursues ambitious expansion plans.

The new facility, secured against property and receivables, replaces LPA Group’s existing bank loan and overdraft arrangements while unlocking additional working capital. The funding is expected to support both organic growth and potential acquisitions as the company looks to scale its operations.

LPA Group, listed on the AIM market (AIM: LPA), is known for its innovation-led approach to electronic and electro-mechanical engineering. The company serves a range of demanding sectors including transport, aerospace, defence, and industrial markets, delivering products designed to perform in harsh environments while improving reliability and reducing lifecycle costs.

With more than 160 years of UK design and manufacturing heritage, dating back to the installation of the first electric light on Electric Avenue in Brixton, the company has long positioned innovation at the core of its business model.

The refinancing comes at a pivotal time for LPA Group, which is undergoing a significant transformation under new leadership. A recently appointed CEO and CFO, both with public company experience, are leading a programme to consolidate the group’s four divisions into a single, streamlined entity. The overhaul includes operational efficiencies, a strengthened market proposition, and a full corporate rebrand aimed at positioning the company for long-term growth.

“We are pleased to have completed this refinancing which provides sufficient headroom for the Group to continue delivering on its growth plans over the coming years,” he said.

Chief Financial Officer Stuart Stanyard highlighted the competitive nature of the funding process, noting that ACABL distinguished itself through both execution and commitment. “Arbuthnot put forward the strongest team by a long way and were the only participants to have an underwriter present during the process,” he said. “They approached the process wanting to do business. We had tight timelines to meet, and from an ability to execute it was a 10 out of 10. As we look to doubling the business in the medium term, having a lender who understands our ambitions and can support future growth, including potential acquisitions, was essential.”

“This facility gives LPA the working capital headroom to execute its consolidation strategy and pursue growth, whether organic or through acquisition,” he said. “We are very pleased to support LPA Group.”