Maplin has secured £20m of credit to fund its expansion plans for 100 new stores and an enhanced online retail offer.

The electronics retailer has secured a new revolving credit facility from Lloyds Bank Wholesale Banking & Markets.

In addition to securing a new finance package from Lloyds Bank, Maplin has now repaid the original acquisition finance that funded the private equity-backed management buyout of the business in 2004.  

The Rotherham-based retailer currently has 200 stores throughout the UK and aims to increase this number to 300 by 2015.

Maplin will also use the funding to invest in its e-commerce platforms and its website, which currently receives over 27 million visits a year. 

Maplin said in July it is investing £1m per month into projects such as multichannel development and new stores under the leadership of retail veterans chairman John Lovering and chief executive John Cleland.

The management team are enacting an “accelerated investment plan”, which will impact short-term profitability, in order to better cater for changing customer needs and following a decline in earnings in 2011.

EBITDA tumbled to £29.9m from £40.8m year-on-year and sales edged down 1.6% to £205m, Retail Week revealed in July.

Maplin finance director Claire Webb said: “Earlier this year we announced plans to improve the business by investing in new stores and improving our online capabilities. The funding package we have agreed with Lloyds Bank will support these initiatives. 

“In particular we have received very positive feedback from customers regarding their in-store experience. They like the fact our staff are knowledgeable and can provide them with the correct solution. By opening 100 new stores over the next three years we are ensuring that more customers can benefit from this service.” 

David Hunt, relationship director at Lloyds Bank Wholesale Banking & Markets’ Sheffield, said: “Maplin is a good example of a mid-market business that is generating steady growth.  These businesses are fundamental to the UK’s economic recovery and we are committed to working with them to help them achieve their business goals.”