Leumi ABL supports growth ambitions of South Yorkshire manufacturing business
Leumi ABL completes multi-facility refinancing deal with Braeforge Ltd t/as Pensworth
“During the negotiations Leumi ABL’s Managing Director and Commercial Director both visited us to get a full understanding of our business and future plans. We were impressed that the Managing Director was open to express his confidence in us and his desire to have us as one of his clients.
“Before finalising their offer they visited us to ensure their proposal would work and in the latter stages improved their offer without our request to ensure they had more headroom. Throughout the refinancing the whole of the Leumi team were responsive and approachable, and any issues were resolved quickly. The Leumi legal team was both positive and pragmatic and ensured they kept the legal documents as straightforward as possible.”
Jonathan Hughes, Regional Sales Director at Leumi ABL, adds: “During the seven month negotiation process, we got to know the business really well, and were comfortable with the turnaround which is commercially sustainable. We were in competition with other funding providers but showed that not only did we have a real appetite to complete the deal, we could deliver our Credit Committee.”
Following Leumi ABL’s proposal, BR did not hesitate to switch their funding provider and a substantial funding facility was put in place, giving BR the flexibility they needed, particularly with regards to the financing of UK invoicing, but also on export debt. Leumi ABL offered favourable rates, few exclusions and up to 90% of invoice debt – a significant increase over BR’s previous actual drawdown facility.
Managing Director at BR Pharmaceuticals, Phillip Byrne, comments: “Cash is the lifeblood of any business and the funding from Leumi ABL has made a significant contribution to our cash resources which we can now utilise for working capital and product development. This is a tough business environment and we were previously with a major high street bank that was unable to offer the flexibility on funding that we needed. Leumi ABL improved on this so we made a commercial decision to move and this was backed up by having built a good relationship with them.
“John Walsh from Leumi ABL has been positive and proactive throughout the entire process, and reflects Leumi ABL’s approach to doing business with their clients. Quite simply, everything works, they deliver what they promise and the procedures are straightforward. I’m very glad we moved to Leumi ABL and wouldn’t hesitate to recommend them to other growing businesses.”
Helen Hubson, Assistant Accountant at BR, adds: “The Leumi ABL system is very easy to use, everything is very clear and if there are any issues they are resolved quickly and pragmatically.”
John Walsh at Leumi ABL built the relationship with BR over several years and is pleased to be supporting this local success story: “BR has gained a reputation for being able to find and market products that offer cost-effective but profitable options, across a range of health and personal care products. They are well positioned for continuing growth and the Leumi ABL team look forward to supporting them.”
The company’s previous funding provider had been restricting the facilities and this prompted the search for a more flexible and reliable source of funding to support the growth plans of the business.
Rash Nila, Managing Director at Microtek, comments: “We have been very impressed with Leumi ABL. Everything has gone smoothly and we now have a flexible facility based on a 95% drawdown rate, whereas before it was only at 65%. This makes a big difference to us as we continue our growth strategy, and effectively gives us access to significantly increased working capital.”
John Walsh, who led the negotiations for Leumi ABL, adds: “Microtek has an impressive reputation in their market and a clear opportunity to further grow the business. Leumi ABL is delighted to be able to assist this planned growth and we look forward to working with Rash and his team.”
Jonathan Grant at Grant Chartered Accountants is clear about what makes Leumi ABL stand out in the market: “John Walsh always responds quickly and can very quickly grasp the situation from the client’s perspective. He makes the client feel comfortable, showing how Leumi ABL can help. Whilst being very much on the client’s side, he is also very realistic and understands what is required of their credit committee to make the deal work. Having also met Leumi ABL’s Managing Director, Phil Woodward, it seems that the positive and proactive approach taken by the Leumi team is a refreshing change from many other funding providers, particularly in the current economic climate.”
Leumi ABL completes £2.8m multi-asset finance deal
Steve Quinlan, Managing Director at Coventry Chemicals, is clear about what makes Leumi ABL stand out from the crowd: “Our decision to move to Leumi ABL was driven by a number of factors. Leumi’s ‘can-do’ approach was evident by the open and honest way they worked with the team here. The facility they offered fitted the business and our aspirational plans for the future. They reacted swiftly to our requirements and demonstrated an ability to adapt as the process of transfer got underway, and the people we have met have all been friendly, professional, efficient and approachable.
“The stand out characteristic was the support shown for our plans and the facilities were tailored to enable us to grow. Now a few weeks into the relationship, the systems and processes are easy to use and understand. We have met our main contact who took the time to visit us – he took a genuine interest in the business and went round the factory with me to better understand what we do. Without the bigger facility from Leumi ABL we would not have been able to deliver our contracted retail growth. We have new contracts already on stream and more to come in early 2013, which we would not have been able to deliver without Leumi’s support.”
Jason Holland, Regional Sales Director, commented: “Leumi ABL is pleased to be supporting the growth ambitions of this successful Midlands business as they forge ahead with their plans.”
Leumi ABL supports MBI of Eddingtons Ltd
Leumi ABL completes financing deal with Rayfern Limited
Stock finance makes all the difference for Drytac Europe Limited
Leumi ABL’s £11.5m multi-asset ABL package supports Midlands turnaround
Brintons is one of the world’s leading premium brand carpet manufacturers, producing primarily Axminster and Wilton carpets for the commercial and residential markets. Since setting up their first mill in 1783, Brintons was until September 2011 a family run business. Years of successful growth saw the company patent its Axminster loom, pioneer the 80% wool 20% nylon blend for carpets, establish offices in India, the USA and Australia, and supply the largest ever carpet order in the world for Hong Kong Airport in 2009.
Today, the company’s manufacturing facilities in the UK, India and Portugal are amongst the most advanced in the world and under new ownership, there has been a substantial programme of operational restructuring providing greater efficiency. The company now manufactures carpet for its core markets in the Hospitality, Cruiseline, Leisure and High Quality Residential Sectors. Don Coates, Managing Director at Brintons comments: “We are delighted to have Leumi’s support as another step in the turnaround to profitable growth for Brintons”. Jason Holland, Leumi ABL Midlands Regional Sales Director, adds: “Brintons is one of those iconic British brands that has established a reputation for excellent quality around the world. Recent, difficult years for the industry prompted the sale to an investor with global strategic vision and this, together with the new flexible funding package from Leumi ABL, will help to strengthen the business for the future.”
Leumi ABL client case study - Morris & Son (Holdings) Limited
The main site is in Leeds with an additional wholesale and packing unit based in Manchester. In 2009 the group acquired Stockley’s Sweets Limited based in Blackburn, Lancashire. Stockleys manufacture and distribute a wide range of sugar based confectionary, cinder toffee and fudge products to a broad range of customers throughout the UK.
Seeking to support further growth of the business, they turned to Leumi ABL and a £3m invoice discounting facility was put in place. Andy Needham, Managing Director at Morris and Son, commented: “we had been with our previous finance provider for over seven years and our requirements had evolved over that time. Once we decided we needed to change we contacted Leumi ABL and they put together a very attractive package, having undertaken a thorough review of our requirements. We look forward to a long and mutually beneficial partnership as the business moves to its next stage of growth.”
Leumi ABL client case study - Lambson Building Products Limited
Established in the early 1960's as part of the Lambson Group, Lambson Building Products is a profitable business involved in the sourcing, manufacture and supply of laminated timber boards to the leisure industry. The Leumi UK team have worked closely with the senior management to understand their particular challenges and structure an appropriate banking and ABL funding facility that would give the client the flexibility they needed to drive future growth in the UK and Europe.
The refinance and re-banking of Lambsons involved a £5m asset based lending facility from Leumi ABL, plus £4.44m from Bank Leumi (UK) to support the business with stock finance, property finance, and a multi option and foreign exchange facility.
The client switched to Leumi UK when they became unhappy with the arrangements from their incumbent high street clearing bank, having experienced five changes of relationship manager and a lack of flexibility in the funding provided.
Now in month three of their new relationship with Leumi UK, Glenn Monkman, Managing Director at Lambson Building Products, is very happy with the new arrangements: “We have dedicated support and any issues are resolved promptly and efficiently which is a welcome change for us. The systems are simple and user friendly, which has contributed towards a smooth transition. Due to purchases our business makes in Euros and US Dollars, we needed a facility that would give us real flexibility and we found that, unlike other organisations, the Leumi UK team took the time to listen to and understand our requirements and came up with a completely tailored solution.”
John Walsh, Regional Sales Manager at Leumi ABL, said: “Lambsons has an excellent reputation and the business has remained robust throughout the economic downturn, taking advantage of new opportunities and developing new markets. We very much look forward to supporting the business as they continue their successful growth.”
Steve Cooper, Regional Manager at Bank Leumi (UK), added: “We are delighted to be supporting Lambsons as they continue their growth strategy in the UK and overseas. The new working capital facility will assist with their expansion plans.”
Leumi ABL client case study - Ash and Lacy Building Systems
Ash and Lacy has been bought by incoming management from former owner Hill and Smith Holdings Plc based in Solihull. It is being divested as the Group concentrates on UK transport infrastructure projects and galvanising.
Introduced to the opportunity by Cattaneo LLP, a professional, advisory and corporate finance boutique in Birmingham, Leumi ABL provided a total asset based lending package of £6.85m, comprising a £5.75m invoice discounting facility, £0.75m stock finance plus £0.35m plant finance.
The buyout team includes chartered engineer, Jonathan Evans, who joins the company as Chief Executive. Ian French, a former director of Hill and Smith, will be Commercial Director.
Commenting on the financing deal with Leumi ABL, Jonathan Evans says: “Despite a short timescale, Leumi reacted quickly and enthusiastically throughout. We felt convinced that we were working with people as committed and passionate about their business as we were about ours."
Jason Holland, Leumi ABL Midlands Regional Sales Director adds: “This change in ownership is a tremendous opportunity for Ash and Lacy. Having been in business for more than 140 years, the brand is synonymous with quality engineering and the majority of their products are leaders in their markets in the UK. We look forward to supporting the business as they increase their presence in new markets.”
Leumi ABL client case study - Arundel Aerospace and Defence Systems
The acquisition of Swindon-based Kembrey Wiring Systems will support Arundel Aerospace and Defence Systems’ strategy to build a portfolio of companies that manufacture products for the aerospace, defence and security markets.
Kembrey is already a market leader in its target sectors so there is a strong foundation upon which to build. The wealth of experience and expertise of Arundel Aerospace and Defence Systems, together with a wide number of contacts within the industry, will help to further develop the business’s leading position in the market.
John Gimson, chief executive officer of Arundel Aerospace and Defence Systems, is taking on the role of managing director at Kembrey Wiring Systems. Having considered a number of potential financing options, he felt that Leumi ABL offered a more flexible and personal approach: “Leumi ABL took the time to really understand our business needs and responded with a well structured invoice finance facility.
They delivered what they promised, and we look forward to a long and mutually successful association.”
Leumi ABL client case study - Corps Security
Leumi ABL, which this month marks its fifth anniversary, has just completed a financing deal with Corps Security, one of the longest established and best respected providers of security services in the UK.
Established 151 years ago in London, Corps Security has a unique history and constitution and is now recognised as a market leader in specialist security services covering every aspect of threat reduction and business protection. Originally, the business was established to provide employment for injured ex-servicemen returning from the Crimean War and this caring ethos continues today, with a high proportion of their workforce having previously served within the armed forces.
Since 1901 Corps Security has enjoyed Royal patronage, firstly with His Majesty King Edward VII heading their list of Governors, a tradition which the reigning Sovereign continues today in the office of Chief Life Governor Corps Security, a business rich in heritage, has eschewed more traditional funding options in favour of a finance provider which is quickly gaining a reputation for its flexible, innovative and highly personal approach. In a deal completed in June 2011, Leumi ABL provided a £5m invoice discounting facility to Corps Security.
The Corps Security business is embarking on a period of significant reorganisation and brand development in order to increase its UK market share. To enable this transformation, Corps needed a finance partner that could match its ambitions, and discussions began with Leumi ABL following the recommendation from an existing Leumi ABL client.
Peter Webster, CEO of Corps Security, comments: “Corps Security is a progressive and flexible security partner to its customers and, as such, we needed to find a financial partner who could provide those services under the same ethos. Leumi ABL has more than matched up to our requirements and we are confident that Leumi will provide the flexibility and responsiveness we need to maximise our growth potential.”
Steve Nixon, Leumi ABL Regional Sales Director – London, explains that the deal came with a number of challenges: “We were asked to fund a pre-assigned debt and needed to generate sufficient headroom to replace facilities from both the existing invoice discounter and the bank's senior debt. We now look forward to providing the funding flexibility that will help support the continuing growth of Corps Security in this testing market.”
Leumi ABL client case study - Bristol & London Plc
In a deal completed on 1st June 2011, Leumi ABL has provided financing to Bristol & London Plc, the UK’s leading provider of prestige car replacements.
Established in 1998 in Portishead near Bristol, the company specialises in accident management for drivers of prestige cars. With an extensive fleet of quality marque cars, they provide replacement vehicles on a hire basis to individuals who have been in an accident, where the fault lies with another party, whilst their own car is being repaired.
Having been introduced to the opportunity by one of their competitors for whom it was too large, Leumi ABL provided an invoice discounting facility to replace the client’s bank funding in full and to provide additional working capital.
Richard Abel, CEO at Bristol & London, felt that invoice discounting was the way forward to boost the company’s working capital: “After considering a number of potential finance providers it was clear that Leumi ABL stood out from the others. They took the time to understand the finer points of our business and I was impressed by their efficient and proactive approach. We look forward to Leumi ABL’s continuing support as we continue to expand our business.”
Jonathan Hughes, Regional Sales Director at Leumi ABL, adds: “This deal was characterised by a very unusual debt type and by complex security, and as a result took seven months to complete. One unusual aspect of the way the company does business is that it gives extended credit to its customers, who are all insurance companies, and so we offered extended financing.
No-one else in the invoice finance market has the flexibility to offer this. We believe Bristol & London is poised to see some healthy turnover growth and we look forward to supporting Richard and his team as they continue their expansion plans.”
Leumi ABL client case study - Philidas
Based in Pontefract, West Yorkshire, Philidas is a leading manufacturer of fasteners, plugs and locking nuts for automotive and industrial applications, serving a worldwide market. Having been introduced to the opportunity by Pathstone Finance, Leumi ABL provided a total funding package of £1.6m, comprising a £1.3m invoice discounting facility plus £300,000 stock finance.
Eric Sinclair, Managing Director at Philidas, was particularly impressed by Leumi ABL's approach to assessing the business: "From the very early stages, Chris grasped the nature of our business, understood our strengths and weaknesses, and the potential to grow the business. It was clear that Leumi ABL wasn't just out to win any deal, but would make a careful and thorough evaluation of the opportunity. During the two months from initial discussion to completing the deal, everybody I spoke to at Leumi ABL was extremely professional and the ongoing relationship is excellent. I have recommended Leumi ABL to other businesses looking for a supportive funding partner.
Eric continues: "When the deal was completed, Philidas had 49 employees and in the last month we've recruited nine more people on the strength of our business growth. This is a particularly difficult area for employment and we could not have achieved this without the new funding and support from Leumi ABL."
Chris Divers, Leumi ABL Regional Sales Director – North, adds: "Philidas has a great reputation in its market and the new facility has helped fuel strong growth since joining Leumi ABL. We look forward to supporting their ambitious growth plans as they take shape over the coming months."
Leumi ABL client case study - Primeur
The new £2.7m asset based lending facility comprises a £1.5m invoice discounting line provided by Leumi ABL, supported by a further £1.2m from Bank Leumi (UK). The new working capital facility will allow the business to take advantage of its strong position in the market, grow its market share further and develop new product opportunities.
Ian Brazier, Finance Director at Primeur, comments: "Leumi ABL really stood out as they were prepared to genuinely understand our business requirements. They focused very much on what we needed and worked very closely with us to explore how everything could work. It was clear that they wanted to ensure that their proposal was exactly right for our business."
John Walsh adds: "We're very proud to be supporting local businesses and will continue to work closely with the Yorkshire dealmaking community to assist the working capital requirements of businesses that are looking to move forward in such uncertain times."
Leumi ABL client case study - KTS Wire
Steve Longbottom, Managing Director at KTS Wire, comments: "We reviewed several ABL providers and banks in our search for a long term funding partner who would support our ambitious growth plans. Quite simply, Leumi ABL ticked all the boxes. They took the time to understand our business strategy and responded with a flexible approach, particularly on the export market which is a significant part of our business."
John Walsh adds: "We're very proud to be supporting local businesses and will continue to work closely with the Yorkshire dealmaking community to assist the working capital requirements of businesses that are looking to move forward in such uncertain times."
Leumi ABL client case study - West Midlands business
Asset based lending specialists, Leumi ABL, approached the company and within only three weeks from making the decision to switch to the new funding provider, a £3.5m invoice discounting facility was in place.
Their Finance Director was initially unaware of Leumi ABL but was quickly persuaded by their approach to building strong relationships with their clients: "Leumi ABL promised they could act as quickly as we needed and came up with an appealing offer that gave us the flexibility that we were missing from our more restrictive high street bank funder. The business has had a difficult period and it was important for us to know that we have a reliable and responsive funder who will support our business both now and in the future."
Jason Holland, Leumi ABL Midlands Regional Sales Director, believes there are strong signs that the business has turned a corner: "This has been a badly hit sector of late and the business had implemented a number of corrective actions. A strong family heritage underpins an excellent reputation among their customers and our client is now well positioned to flourish."
With the new financing package in place from Leumi ABL, prospects look good for this well respected West Midlands business.
Leumi ABL client case study - Midlands-based Covrad
Established over 100 years ago, Covrad has developed a worldwide reputation as an innovative supplier of a wide range of heat transfer solutions. The business specialises in the design, manufacture and sales of cooling systems, with the primary application being diesel engines. The origins of the business go back to the dawn of the UK motor industry and their location in Coventry is at the heart of where many of the British manufacturers had their factories. As the UK car industry declined Covrad sought to add more value to their proposition, and their technical and design expertise is now highly valued by their customers, such as Perkins and Caterpillar.
Transferring from one of the major high street clearers, Covrad’s new financing facility from Leumi ABL has a high advance percentage based on the additional security offered by the company’s stock. Leumi ABL was able to offer a high degree of flexibility, having taken the time to build a thorough understanding of the business, both in terms of the nature of Covrad’s product range, their debt structure and debtors.
Managing Director of Covrad, Kayvan Namazi, commented: “We welcomed Leumi ABL’s commonsense approach in providing financing facilities. Of course, both parties have had to compromise to arrive at an agreement, and during the course of our discussions we experienced honesty, ease of communications, and a will to help. In today’s environment when high street banks are busy dealing with the new banking levy, bonuses and their control, separation of retail and investment banking..., Leumi’s approach has indeed been a refreshing change. Thank you Chris and your team.”
Chris Divers, Leumi ABL Sales Director - North, added: “Covrad has a management team that is both long established and hugely experienced, and the business is going from strength to strength despite the recession.”
Leumi ABL client case study - Phoenix Vehicle Hire
The working capital facility from Leumi ABL has supported Phoenix Vehicle Hire in their acquisition of some of the trade and assets of the original PFB Self Drive business. The original company had grown rapidly to become a well known provider of vehicle hire in the West Midlands region with a fleet of over 1000 vehicles.
With a strong track record in the industry, Patrick Tierney, Managing Director of Phoenix, has experience in the sector from his many years at Go-Plant, where he was backed by Graphite Capital and exited in 2007. Phoenix has overseen a complete change of operational management. Customers include councils and large blue chips.
Commenting on the new financing arrangement with Leumi ABL, Patrick said: “Leumi ABL took the time to really understand our business needs and responded with a well structured facility offer. They have delivered what they promised and we look forward to a profitable relationship.”
Jason Holland, Midlands Regional Sales Director at Leumi ABL, added: “By retaining most of the municipal hire business, Phoenix has a solid debtor base with strong covenants and the business is well placed to build on an established reputation. Phoenix is one of many entrepreneurial businesses to have benefited from Leumi ABL’s expertise in asset based lending over the past few months as new opportunities emerge from the slow economic recovery.”
Leumi ABL client case study - Premier Contract Supplies Limited (PCS)
Premier Contract Supplies Limited (PCS) in Farnborough supplies bathroom and sanitary-ware to the construction and hotel industries, delivering a service package that aims to alleviate all the issues involved with procuring bathroom-ware to sites.
PCS are unique in the UK market in that they are the only contract bathroom supplier to have ‘from factory’ access to all the high-end manufacturers’ products. As a specialist niche supplier, their turnover has grown to over £8m.
When their finance provider of five years decided to pull the plug on their stock facility, they needed to find a new source of funding. Leumi ABL was selected to provide a £1.7m facility consisting of a £1.4m confidential invoice discounting line and a £300k inventory facility.
PCS Managing Director, Vince Caldicott, acknowledges the challenges presented by the deal and was impressed by Leumi ABL’s ability to negotiate effectively and speedily with the various parties involved: “The attraction of Leumi ABL is that they take a much more personal approach; they were very thorough and helped make sense of everything throughout the process.”
The new funding will be used to purchase stock and Vince is optimistic about their trading outlook: “This facility has enabled us to get the supply chain rolling again and sales are already up.”
Leumi ABL client case study - ATC Drivetrain UK
Leumi ABL was chosen by ATC Drivetrain UK as their preferred finance supplier for a £2.5m asset based lending package, comprising a confidential invoice discounting line, plant and stock facility. Much of the CID facility will be used as working capital as the business grows throughout 2010.
ATC Drivetrain, which will be renamed “Autocraft Drivetrain Solutions Limited” is one of the major European suppliers of remanufactured engines to the OEMs. Autocraft’s primary business is to remanufacture diesel and petrol engines. The faulty engines are returned to the factory by OEM customers for strip down and complete remanufacture. These include engines that are warranty failures as well as those that are high mileage engines which no longer meet today’s emissions standards. As part of this process Autocraft reuses many of the engine components whilst recycling the material from the remaining failed components through the sale of scrap materials to leading metal recycling companies. Autocraft also work with leading OEMs to manage the run out of past-model engines to minimise obsolescence and form strategies to ensure that OEM’s support vehicle owners for a minimum of 10 years after a model phase out.
Autocraft has built a strong reputation with their automotive customers who include Ford, Jaguar Land Rover, GM, Chrysler, Volvo Cars, JCB and Subaru. Following the successful implementation of a turnaround strategy by the management team, the company is now well placed to exploit market opportunities for growth as new engine emission rules come into force shortly.
Steve Harris, Managing Director at Autocraft, acknowledges the short time frame in which the deal needed to be completed: “Leumi ABL took a very proactive approach throughout the deal process and provided the support we needed to move ahead quickly. We look forward to Leumi ABL’s continuing support as we grow the business under our new brand of Autocraft Drivetrain Solutions.”
Jason Holland, Midlands Regional Sales Director at Leumi ABL, adds: “The automotive marketplace has suffered badly during the past year, however Autocraft’s deep expertise in this sector has gained them many long standing customer relationships. The management team have put the business in good shape over the last twelve months and are poised to see some healthy turnover growth.”
Browne Jacobson LLP acted as legal advisers to Leumi ABL on the deal, and Phil Jackson of Secantor was adviser to the Autocraft management team.