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Watford-based short-line wholesaler Sigma Pharmaceuticals has said a recent £50m refinancing deal will help position it for “strategic growth and expansion”.

Assisted by PwC advisors, the wholesaler secured an increased asset-based lending facility of £50m from lender Leumi ABL. 

The company’s accounts for the year ending August 31, 2024 show that as of February this year it relied on a £45m asset-backed lending solution, suggesting the facility has increased by £5m with the recent announcement.  

The refinancing comes “at a pivotal time for Sigma,” said PwC, adding that with independent pharmacies gaining prescription market share the short-liner’s “focus on this dynamic segment means it is well positioned to benefit from changes in consumer preferences”. 

The higher asset-based facility will allow Sigma to “continue to support its core customer base of independent and regional chain pharmacies as well as investing in operational efficiencies and pursuing strategic opportunities,” PwC added. 

Bhavin Shah, chief financial officer at Sigma, commented: “This refinance marks a significant milestone for the Sigma Pharmaceuticals group, positioning us for a new phase of strategic growth and expansion. 

“We are confident that this new facility will provide the flexibility and capital needed to achieve our long-term goals.”

Chris Hawes, an advisor on PwC’s debt and capital team, said the transaction “highlights the critical role of asset-based lending in providing flexible, scalable funding solutions for businesses at the heart of the UK’s healthcare supply chain”.

Mr Hawes said Sigma’s “strong market fundamentals” make it an “exciting business for the future”.  

The 2023-24 accounts showed that in the 12 months to September 2024 the wholesaler made a profit of £10.2m, 5.6 per cent higher than the previous year when its profits stood at £9.7m. 

Sigma directors attributed this in part to increased market share in its core base of independent pharmacies and to an “improvement in supply chain stability”. 

Related: New, greener logistics platform will prevent stock loss says Sigma