UK - PAI to inject additional £20m into Kwik-Fit

Kwik-Fit, which was founded in Edinburgh 38 years ago, is understood to have been hit by the sharp fall in the value of sterling. PAI's acquisition of the company was financed partly with loans priced in euros, while a growing share of Kwik's profits is in pounds, meaning the company's debt has grown in proportion to its earnings as the pound has depreciated.

The downturn has also hit the retailer more directly, as consumers are delaying tyre and brake replacements to save money.

Kwik-Fit is expected to generate more than £900m in sales this year, while EBITDA is due to slip by 3% to just above £96m.

PAI bought Kwik-Fit in 2005 in an £800m secondary buyout from CVC Capital Partners. Barclays was one of the debt providers on the deal; the company's debt totalled £822m at the end of last year.

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