Feed group secures funding for growth
PUBLISHED: 09:00 01 September 2011
BOCM Pauls, the UK's leading animal feed producer which is based in Suffolk, has secured a £90million lending package from Lloyds TSB Commercial Finance to support future growth.
The company, formed in 1992 through the merger of BOCM Silcock and Pauls Agriculture, delivers more than 2million tonnes of feed a year, generating annual turnover of around £450million.
Its refinancing package with Lloyds involves an asset-based facility secured against the value of its sales ledger, stock, property, plant and machinery.
BOCM Pauls, which employs about 1,000 people across 11 mills and blending plants, with a head office in Ipswich, said the deal “ensures the business has the financial headroom to capitalise on opportunities in the animal feed market”.
James Powell, finance director at 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.”
He added: “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.”
The company is also using its boosted cashflow to develop further its green credentials by reducing CO2 emissions from all of its mills.