A Reading business which produces organic food for children is moving into new premises and is on track to double turnover in the next year after securing funding from Lloyds TSB.
Father-of-two Paul Lindley launched Ella’s Kitchen in 2006 after spotting a gap in the market for a children’s healthy food brand.
He left his job as deputy managing director at children’s TV channel Nickelodeon to set up the firm, which is named after his nine-year old daughter.
The firm produces organic smoothies, baby food and pasta sauces, made using blended fruits and vegetables. The products have been designed to appeal to babies and toddlers and all come in an innovative pouch format which make them convenient for mums and fun for kids, with Paul’s children and their friends involved in the development process.
The £8 million turnover company sells 30,000 food pouches every day and supplies to major retailers including Sainsbury’s, Tesco, Waitrose, ASDA, Morrisons and Boots.
Ella’s Kitchen is being supported by its banking partner of 2 years, Lloyds TSB Commercial, which is providing day-to-day banking services and guidance to support the company’s expansion.
The bank introduced Paul to its specialist asset based lending (ABL) team, Lloyds TSB Commercial Finance, which devised a package of facilities to support the business’ long-term working capital requirements.
The business has plans to increase headcount from 7 to 15 over 2009 and has moved into a 1,500 Sq ft barn conversion at Greys Green.
Ella’s Kitchen has won a number of awards including ‘Launch of the Year’ in the Grocer’s recent top products survey and Paul is now looking to introduce new flavours to the range.
Paul Lindley, managing director, Ella’s Kitchen said: “After many years attending children’s focus groups at Nickelodeon, I decided to apply my expertise to launch my own venture and identified a gap in the market for a healthy food brand for kids.
“We’ve worked hard to create products that are nutritious and fun for children as well as being practical for parents. The business has gone from strength to strength and we are now moving into new premises, taking on extra staff and looking into develop our product range.
“Lloyds TSB Commercial recommended ABL to support our expansion and the local team was able to quickly put together a tailored lending package. Having a supportive banking partner that understands our long-term ambitions is crucial as we look to the future.”
Peter Jackson, relationship manager, Lloyds TSB Commercial in the Thames Valley said: “Paul’s ambition and in-depth consumer knowledge has enabled him to successfully develop a range of niche products and establish a well respected brand.
“As a result, Ella’s Kitchen is in a strong position to continue its growth despite the wider economic environment.
“We have worked closely with the firm and our colleagues from across the Lloyds Banking Group to put together the best funding solution for the business’ needs.”
Diane Yates, client manager for Lloyds TSB Commercial Finance said: “We were able to quickly devise a package of facilities to ensure Ella’s Kitchen has the sufficient working capital to fulfil its growth strategy.
“ABL is an ideal form of finance to support this type of growth - by releasing the value from existing assets such as stock, property or invoices, it can quickly provide capital to support the business when it makes an investment.”
April 2009