ABL ensures the animal feed producer is in a strong position for future growth
BOCM PAULS, the UK’s leading animal feed producer, has secured a £90 million asset based lending package from Lloyds TSB Commercial Finance to ensure the firm is in a strong position for future growth.
Established in 1992, the £450 million turnover business manufactures compounds, blended feeds and co-products for farm animals, delivering over 2.0 million tonnes per annum with an estimated 20 per cent overall market share.
The company employs approximately 1,000 people across 11 mills and seven blending plants in the UK, with its headquarters in Ipswich, Suffolk.
The refinancing package is secured against the value of BOCM PAULS’ sales ledger, stock, property, plant and machinery, and ensures the business has the financial headroom to capitalise on opportunities in the animal feed market.
The company is also utilising its boosted cashflow to further develop its green credentials by reducing CO2 emissions from all of its mills, cutting food sector waste by utilising human food co products and developing new technology to help dairy farmers to reduce the level of methane emissions from their cows.
James Powell, finance director of BOCM PAULS, said: “In order to stay on top of this market it is essential to have sufficient financial headroom to adapt to changing prices and to have the financial resources for growth.
“We have worked with Lloyds TSB Commercial Finance for three years and this new funding package will ensure we are in a strong position to progress a number of new business and acquisition opportunities.”
Sam Owen, client manager in the Large and Major Corporate division of Lloyds TSB Commercial Finance, said: “BOCM PAULS is a highly profitable, market leading business which operates with robust levels of financial headroom.
“The business benefits from a strong operational management team that is focused on driving increased efficiencies across the company and making strategic acquisitions. As a result of its nutritional expertise, the firm’s products enhance quality of the end product – meat, dairy or eggs, and consequently the business is increasingly involved with dedicated supply chains with the country’s major processors and supermarkets.
“Asset based lending is ideal for large, growing companies like BOCM PAULS , as the facility is based on the value of issued invoices, stock, plant and machinery, which means it provides fast access to working capital and can grow in line with sales.”
August 2011