Boosted lending facilities at price comparison site Moneysupermarket.com (MONY) are a 'significant development' according to Shore Capital analyst Roddy Davidson.
In a move not covered by an RNS the company announced (17 Dec) it is expanding its facility with existing lenders Lloyds and Barclays from £50 million to £100 million, and introducing a £100 million uncommitted flexible element to provide acquisition finance.
This builds on an already cash-rich balance sheet with Shore Capital forecasting net cash of £37 million by the end of 2016.
Davidson adds that the boost to borrowings 'chimes with our expectation that Moneysupermarket is likely to harness its financial strength, consumer and online skills and experience to pursue a more expansive strategy.
'This approach could potentially boost already attractive medium-term growth potential through acquisitions and new ventures in other geographical and / or e-commerce markets.'
Applying some blue sky thinking, we argued in the 17 December issue of Shares that the FTSE 250 stock could make the leap to the FTSE 100 in the next five years.