| Refinancing
to implement your business strategy
The financing structures in place need to match the requirements
of any business. Conventional or dated funding mechanisms
can often restrain a company's ability to avail of new market
opportunities.
The long term flexibility provided by sales and asset based
financing may provide the boost needed to sustain business
growth.
Have a look at the case studies below to see how we assisted
our clients in reviewing their existing financial structures.
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£1.2m Equipment Supplier to Brewing Industry
£1.2m refinancing to support increased working
capital requirement
Our client not only provides brewers and soft drink manufacturers
with a comprehensive range of equipment, they also provide
a leading edge stock management service, which effectively
manages the ‘supply’ side of a brewers business
by utilising intelligent smart scanning technology.
Originally set up as a beer pump manufacturer for the traditional,
independent brewery trade, our client has successfully restructured
and refocused their business in order to survive the significant
consolidation that occurred within the brewing trade during
the 1990’s. Due to the impact of legislation introduced,
a number of ‘super’ breweries emerged, reducing
the customer base for our client and increasing the pressure
on margins. This industry change triggered the establishment
of a valued added service from our client resulting in a forward
thinking programme of partnership with major brewers in the
UK.
With a successful strategy implementation underway, Director – Northern Region undertook detailed
discussions with the company directors and their corporate
financiers to understand the dynamics of their business and
the funding required to support their ongoing development.
The resulting restructured financial package includes invoice
discounting as a flexible source of funding, provided to meet
their specific needs.
Let us help you unlock the potential of your business or investment
- contact
us today.
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£1.6m Waste Management Company
£1.6m refinancing to support increased working
capital requirement
Originally incorporated in 1958, our client’s principal
business was scrap metal dealing up until the early 1990’s.
With the increasing level of environmental legislation and
new recycling requirements enforced on businesses, our client
spotted a potential business opportunity and shifted their
focus to waste management.
Based in Manchester, our client has invested heavily in a
substantial infrastructure in order to support this business
refocus and has grown to a company turning over in excess
of £10m. With the potential to double in size in the
medium term, our client requires the flexibility that receivables
finance can provide to support ongoing growth and to continue
the expansion and diversification that has been a feature
of their success. Director – Northern Region spent time with
the company directors to assess the funding required to both
refinance existing facilities and to provide sufficient headroom
for organic development and ongoing expansion.
Let us help you unlock the potential of your business or investment
- contact
us today.
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£800k Facilities Management Company
£800k refinancing to support expansion and cost
management plans
Providing a comprehensive facilities management service,
involving the maintenance of fixed assets for large, high
quality corporate customers, our client started business in
Hampshire in 1986 and over the past number of years, has enjoyed
increased demand for services and rapid growth in turnover
as a result.
In order to allow the company to support expansion plans
to maximise growth potential, the highly qualified management
team, in tandem with Simon Button of Chantry Vellacot DFK,
Corporate Finance recognised the need to expand funding facilities
beyond the confines of the existing overdraft facility.
To meet both current and future requirements, our Regional
Sales Director in the South of England worked with the both
the management team and their advisors to tailor an £800k
funding package, representing an increase in funding availability
for the company of over 300% on current facilities. The flexibility
offered by this receivables finance facility ensures that
our client has sufficient cashflow to meet the financial demands
associated with increased sales, as well as providing the
means to implement their operational expansion strategy.
Let us help you unlock the potential of your business or investment
- contact
us today.
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£5.3m Book Distributor
£5.3m refinancing package to support comprehensive expansion
plans
Our client started 75 years ago as a newsagent shop, established
by the grandmother of the current owner. Overtime, the business
grew and expanded and gradually became wholesale distributors
of newspapers within a localised region.
The major changes in the newspaper industry during the mid
1980’s had a significant impact on the company, necessitating
a refocus of the business. They had continued to operate retail
outlets and had developed into selling books, toys, cards
and stationery. The latter became the new focus of the business,
acting as a wholesaler of books, and now accounts for 90%
of their trade, sold either through catalogues, or by their
cash and carry operation.
This business refocus, coupled with the securing of major,
expanding retail customers and maintenance of an extended
smaller sized customer base has seen our clients turnover
grow to £14m in 2002, with a forecast of £20m
for 2003.
As can be expected in this industry, there is a strong seasonal
bias to the sales pattern, with peak sales occurring in the
August to October run up to Christmas.
In order to fund their aggressive and ambitious sales plan,
our client’s advisers were given a mandate to organise
a new financing package that would meet elevated cash flow
requirements, fluctuating according to seasonal demands. As
this was an ideal scenario for an invoice finance facility,
Director – Northern Region worked with the
Co-op Bank to develop a £5.3m flexible funding package
that would deliver working capital funding, £1.8m in
excess of existing facilities, to assist our client in meeting
it’s corporate objectives.
Let us help you unlock the potential of your business or
investment - contact
us today.
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£350k Wholesale Distributor
to the Print Industry
£350k refinance to support aggressive business
growth plans
Launched in 1997, our client specialises in the supply of
plate and pre press items to the print trade. Set up by a
team with 15 years prior experience in supplying products
to this industry, the business has grown steadily and now
employs 7 staff and turns over just under £1m. Corporate
objectives for the year include increasing turnover by 50%
in 2003/04.
In it’s time since launch, our client
has developed a well-spread and comprehensive client base,
due to its reputation in the industry and renown for quality
service.
With market pressure to further extend credit
to customers and our clients ambitious growth plans, cash
flow management is of the utmost importance. Currently with
the discounting arm of a large high street bank, our client
felt that the emphasis on customer service and funding flexibility
that a niche provider can provide would better suit their
business.
As a result, EFE in the South of England,
discussed both tactical and strategic plans with the management
team, to better understand the long terms objectives for the
business, and subsequently structured and delivered a funding
solution that would meet both day-to-day working capital requirements,
as well as providing sufficient headroom for expansion.
Let us help you unlock the potential of your business or investment
- contact
us today.
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