Cash flow boost facilitates growth for a Sussex-based souvenir company

Tosh, a company that creates stylish souvenir products for the National Gallery, the London Transport Museum, John Lewis and Epcot Centre at Disney World, is set to grow turnover by 40 per cent this year after securing a five figure factoring facility from Lloyds TSB Commercial Finance.

Based in Hove, East Sussex, the business creates mugs, bags, t-shirts and magnets featuring iconic landmarks in London and Brighton such as Buckingham Palace, Big Ben and Brighton Pier.

Established in 2006, the company is run by David McLagan and his wife Alison. After travelling around the world, the couple found there was a gap in the market for a global brand which created stylish, higher quality souvenirs.

The business has grown year on year since inception and recently found it needed a cash flow facility to bridge the gap between purchasing products from China and receiving payments from it customers.

Although much of Tosh’s manufacturing is still done in the UK, they are increasingly sourcing products from China – which is then stored and distributed from a local warehouse.

The company approached Lloyds TSB Commercial Finance and secured a five figure factoring facility which advances the value of up to 80 per cent of unpaid invoices. This enables Tosh to keep on top of overhead costs, without draining its working capital.

Now the firm is on track to boost turnover by 40 per cent to over £300,000 this year and capitalise on demand as the tourism industry and the economy improves.

David McLagan, Creative Director of Tosh, said: “Before starting the business I worked in advertising for 18 years and the inspiration for the company came when I realised there was a niche in the tourism market for well designed and stylish mementos.

“Dealing with manufacturers in China and long payment terms was putting a ceiling on our growth and although we are lucky to have such reliable customers, we found we needed a cash flow boost to facilitate further growth.

“The factoring facility from Lloyds TSB Commercial Finance, has now put us in a position to increase production and put in motion our strategy, to capitalise on the increase in tourism generated by London 2012.”
 
Ian Taylor, regional manager at Lloyds TSB Commercial Finance, said: “As the global economy improves, tourists visiting the UK are on the increase and with events like the upcoming Games, David and his team are in an ideal position to make the most of opportunities this presents.

“For a company like Tosh, factoring is the perfect solution as it grows in line with the sales and as the business continues to grow, more funds can be released.