Sharecast - According to Sky News, the company has asked shareholders to approve an investment worth nearly £20m from the BGF, the high street bank-backed fund.
Insiders told Sky that if the investment is agreed, it would value the company on a pre-money basis at about £180m.
Brompton has been hit by increased supply chain and manufacturing costs over the last 18 months. In its latest results filed at Companies House, the company said pre-tax profits had slipped to £7.3m, with margins nearly halving during the year ended 31 March 2022.
Sky said it was unclear how the valuation implied by the new capital-raising compared with prior valuations of the company.
The BGF has invested in hundreds of smaller and medium-sized UK companies since it was established in 2011. It was established in the aftermath of the banking crisis as a way for lenders including Barclays (LON:BARC) and Lloyds Banking Group (LON:LLOY) to rebuild their reputations.
One source told Sky that the deal between the BGF and Brompton was "not certain" to be approved by Brompton's eclectic register of shareholders.