A Cornish bakery aims to create 100 jobs in a three year phase of expansion backed by an asset based lending (ABL) facility from Lloyds TSB Commercial Finance.
Crantock Bakery has agreed a flexible funding package which unlocks £1.5 million of assets, providing the company with the working capital to invest in new machinery, increased stock levels, and resources to develop new products.
Directors at the bakery, who make 20 million Cornish pasties a year, have targeted an increase in sales of 20% per year, growing turnover to £25 million by 2012.
Matthew Hurry, Operations and Finance Director at Crantock Bakery, said: “We have enjoyed record sales in 2009 and it’s good to see that banks are prepared to lend to well-managed companies based on strong business performance.
“We have planned a series of investments to meet the increased demand for our products, so it is vital that we maintain a strong cash flow to fund the upfront costs and keep a high level of working capital in the business.
“The facility from Lloyds TSB Commercial Finance will enable us to invest now to ensure we are ready to make the most of the opportunities we’re likely to see in the next two to three years.
The company currently employs over 160 staff and supplies a national customer base including Morrisons, and high street retailers such as Oggy Oggy, Cornish Bakehouse, and the West Cornwall Pasty Company, plus over 400 customers in the UK and Europe.
James Hester, regional director at Lloyds TSB Commercial Finance, commented: “Crantock Bakery is a leading light in the Cornish food industry. The meat-based food-on-the-go market is robust and traditionally does well in a recession due to changing eating habits and the cost-effective nature of fast food.
“ABL is an ideal funding tool to support many firm’s growth plans, as it leverages a business’ assets, including its sales ledger, to quickly inject cash into the business and enable management to seize growth opportunities.
“The facilities we’ve put in place are flexible and tailored to the exact requirements of the company, which make them well suited to firms like Crantock Bakery looking to expand into new markets.”
In addition to the ABL facility from Lloyds TSB Commercial Finance, Crantock Bakery also banks with Lloyds TSB.
Andy Wilton, relationship director at Lloyds TSB Corporate Markets, added: “Crantock is a well-managed firm with a clear vision for its future development. It’s exactly the sort of business with which we like to work. Along with our colleagues in Commercial Finance, we’re looking forward to a long relationship with the team at Crantock as they continue to grow the business.”
24 November 2009