Nisa results seal bank deal

Nisa storefront

Nisa is on track to hit its full year targets after reporting a positive set of half year figures which have helped secure an increased and extended banking facility.

Despite a transitional year which saw the business restructure to recover from the loss experienced in the last financial year, Nisa managed an EBITDA of £3.3m for the first half of 2015/16, putting it at £3.5m better than the same point last year. Nisa has set itself a target of £7.2m EBITDA for the full year.

In particular trading margins have improved, distribution efficiencies have been achieved which have resulted in a 5p per case saving, and significant overhead savings have been made at the company’s member support centre.

The business has been buoyed by recent high value contract wins, including the £1bn five year contract with the new My Local business and the five year £250m contract extension with Ramsden International. McColl’s strategic move to become more convenience focused has also seen an increase in business for Nisa.

“It is pleasing to see the business performing more strongly and I am confident that our end of year target will be achieved. The new business we have brought in, combined with the operational efficiencies achieved in the first half, have really boosted Nisa,” said Nick Read, CEO.

The refinancing deal with Barclays sees Nisa extend its banking facility by 24 months while also gaining additional funding to support the My Local supply contract.

“After the company’s poor showing last year, the new management team has been keen to drive the business forward into profitable growth and the strength of our financial plan was appreciated by our bank,” said Nisa’s Chief Financial Officer, Robin Brown.