29 July 2010
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20 January 2010
New Machinery is Icing on the Cake for Newport Bakery
A Newport-based bakery has invested £100,000 in new machinery to boost production and service increased demand, after securing an asset finance loan from Lloyds TSB Commercial Finance.
D Gibbon & Sons, which was established over 40 years ago, is a manufacturer and wholesaler of its own bread, rolls and cakes as well as having baking contracts with national brands such as Hovis.
It is now a £5.5 million turnover business which employs over 50 people and makes approximately 1,000 deliveries every day across a 120 mile radius.
The company supplies almost 30 Aldi stores throughout the UK and expects to double this number over the next 12 months. It also aims to win new business with convenience stores, as well as increase catering contracts with firms such as Enterprise Foods, and Booker.
In order to boost production and capitalise on the growing demand for its products, D Gibbon & Sons required two new ovens, a flow wrapper and a van. To fund the capital outlay, the business approached Lloyds TSB Commercial Finance, which provided an asset finance facility.
Russell Gibbon, managing director at D Gibbon & Sons, commented: “Paying cash outright for the new equipment would have significantly reduced our working capital but Lloyds TSB Commercial Finance ensured we were able to fund upfront costs, allowing us to comfortably expand.
“The machinery has enabled us to produce more of our goods, increase capacity and target new business and larger contracts.”
Danielle Bruton at Lloyds TSB Commercial Finance, said: “When tendering for larger contracts, like D Gibbon & Sons, it’s important to have the ability to fund the upfront costs of materials required, as these costs can drain a firm of working capital and cause cash flow issues.
“Asset finance enables companies to obtain funding for the purchase of significant assets they need to seize growth opportunities. It allows firms to spread the cost of these assets without having to fund off the balance sheet.”
In addition to the asset finance facility from Lloyds TSB Commercial Finance, D Gibbon & Sons has also been banking with Lloyds TSB Commercial for 40 years.
Sean Phillips, relationship manager at Lloyds TSB Commercial, added: “We’re committed to helping our customers find the most appropriate funding. Being a part of a large Group means that we are able to draw on a variety of sophisticated lending products, not just traditional loans and overdrafts.
“We worked closely with management at D Gibbon & Sons and our colleagues at Lloyds TSB Commercial Finance to identify the business’ requirements and provide specialist financing to suit these needs.”
D Gibbon & Sons, which was established over 40 years ago, is a manufacturer and wholesaler of its own bread, rolls and cakes as well as having baking contracts with national brands such as Hovis.
It is now a £5.5 million turnover business which employs over 50 people and makes approximately 1,000 deliveries every day across a 120 mile radius.
The company supplies almost 30 Aldi stores throughout the UK and expects to double this number over the next 12 months. It also aims to win new business with convenience stores, as well as increase catering contracts with firms such as Enterprise Foods, and Booker.
In order to boost production and capitalise on the growing demand for its products, D Gibbon & Sons required two new ovens, a flow wrapper and a van. To fund the capital outlay, the business approached Lloyds TSB Commercial Finance, which provided an asset finance facility.
Russell Gibbon, managing director at D Gibbon & Sons, commented: “Paying cash outright for the new equipment would have significantly reduced our working capital but Lloyds TSB Commercial Finance ensured we were able to fund upfront costs, allowing us to comfortably expand.
“The machinery has enabled us to produce more of our goods, increase capacity and target new business and larger contracts.”
Danielle Bruton at Lloyds TSB Commercial Finance, said: “When tendering for larger contracts, like D Gibbon & Sons, it’s important to have the ability to fund the upfront costs of materials required, as these costs can drain a firm of working capital and cause cash flow issues.
“Asset finance enables companies to obtain funding for the purchase of significant assets they need to seize growth opportunities. It allows firms to spread the cost of these assets without having to fund off the balance sheet.”
In addition to the asset finance facility from Lloyds TSB Commercial Finance, D Gibbon & Sons has also been banking with Lloyds TSB Commercial for 40 years.
Sean Phillips, relationship manager at Lloyds TSB Commercial, added: “We’re committed to helping our customers find the most appropriate funding. Being a part of a large Group means that we are able to draw on a variety of sophisticated lending products, not just traditional loans and overdrafts.
“We worked closely with management at D Gibbon & Sons and our colleagues at Lloyds TSB Commercial Finance to identify the business’ requirements and provide specialist financing to suit these needs.”
Notes to editors
Lloyds TSB Commercial FinanceLloyds TSB Commercial Finance (www.ltsbcf.co.uk) is part of the Lloyds TSB Group.
Its services can meet the needs of businesses ranging from start-up through to major global PLCs. This holistic approach to asset backed lending (ABL) means that customers benefit from a far more tailored approach to finance where different elements of ABL can be added to the funding mix according to the needs and lifecycle of the individual business.
Asset backed lending offers a flexible and secure way for businesses to raise the finance they need for expansion, growth, MBOs, MBIs and other opportunities, against assets such as the debt book, stock, plant and machinery and property.
Lloyds TSB was voted Bank of the Year for the fifth year running at the Real FD/ CBI FDs' Excellence Awards 2009 in recognition of the support it offers its business customers.
Lloyds TSB Commercial
Lloyds TSB Commercial is a trading name of Lloyds TSB bank plc and Lloyds TSB Scotland and provides dedicated banking services for customers with an annual turnover of up to £15 million, from start-ups to established companies looking to grow.
Lloyds TSB Commercial increased its lending balances by nearly 20 per cent in 2008. It has over 600,000 small business customers and launched a business charter to support these firms.
The key points of the charter are:
1. Future reductions in base rate in 2009 will be passed on in full to Lloyds TSB Commercial’s customers
2. Lloyds TSB will not change the price or availability of overdrafts during the period of a customer’s agreement (typically 12 months) as long as their accounts are maintained within agreed limits
3. Lloyds TSB will agree to any reasonable request for short term finance and do what we can to support any viable business through temporary difficulties.
4. On renewal of an overdraft facility, Lloyds TSB will only change the limit or the price if the risks associated with that customer have changed materially
5. Small business borrowing will not be switched from base rate to LIBOR
6. Lloyds TSB will host a series of 120 business advice seminars across the UK to provide expert guidance and support for small firms and to strengthen local networks of business professionals.
For more information, please visit www.lloydstsb.com/business Back to top | More Lloyds TSB stories
