7 September 2010
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9 April 2010
Sunderland company drinks up growth opportunities thanks to Lloyds TSB Commercial Finance
A historic Sunderland-based drinks firm has created 17 new jobs, acquired new machinery and brought new products to market after securing a £1 million asset based lending (ABL) facility from Lloyds TSB Commercial Finance.
Established over 120 years ago, Villa Drinks produces well-known brand names such as Hadrian Clear, Mr Fenwick’s and Villa Mixers. After starting out by supplying mixers to local bars in 1884, the company has grown to become a household name in the North East and enjoys popularity all over the world.
The firm also manufacturers packaging for its drinks and produces 75 million glass and plastic bottles a year.
To capitalise on peak summer trading, the business has recently launched Wild juices, aimed at children and sold in an animal shaped bottle, and Bolt energy drinks.
The funding package agreed will enable Villa Drinks to increase employee numbers from 37 to 54 and acquire new machinery to boost capacity and service increasing demand.
The business’ expansion has resulted in it recently securing a contract with a major national supermarket chain to supply its new range of Crystal juices, a ‘one of your five-a -day’ fruit drink.
The ABL financing package includes Lloyds TSB Commercial Finance’s Debtor Protection policy to safeguard against the risk of bad debt.
Owner of Villa Drinks, Malcolm Slatcher, who has 25 years experience in the bottling and soft drink industry, said: “This is an exciting time for us as we have a number of new products to launch and contracts to fulfill. This requires a strong cash flow so we looked for a comprehensive funding package which would provide the capital needed to service the increased demand.
“The ABL facility enables us to release the value of our existing assets to fund the investment required to move forward.
“Also, with Debtor Protection now in place we have a safeguard against bad debt, which gives us peace of mind as we continue growing the business.”
Andrew Bentley, regional manager for Lloyds TSB Commercial Finance said: “Malcolm has pursued a clear strategy to ensure that Villa Drinks has prospered in the downturn and benefitted the local economy by creating valuable new jobs. I look forward to working with the company and providing funding and guidance as it continues to grow.”
The firm was introduced to Andrew by Lloyds TSB Commercial banking, which had been brought in to look at the business’ banking needs and Malcolm was impressed with the Group’s joined-up financing approach.
Lloyds TSB Commercial relationship director David Dick said: “Malcolm approached us with a well-structured business plan which identified untapped demand and a strategy to capitalise on it. We worked with our colleagues in Commercial Finance to provide a tailored funding package, which will closely match the company’s needs as it expands.”
Sunderland City Council has supported Villa Drinks over the years, and was pleased to assist with this expansion.
Janet Snaith, head of business investment at Sunderland City Council said: “Villa Drinks is part of Sunderland’s heritage and we are pleased to be able to work alongside Lloyds TSB on this expansion project, to continue to support such an iconic local brand.”
Established over 120 years ago, Villa Drinks produces well-known brand names such as Hadrian Clear, Mr Fenwick’s and Villa Mixers. After starting out by supplying mixers to local bars in 1884, the company has grown to become a household name in the North East and enjoys popularity all over the world.
The firm also manufacturers packaging for its drinks and produces 75 million glass and plastic bottles a year.
To capitalise on peak summer trading, the business has recently launched Wild juices, aimed at children and sold in an animal shaped bottle, and Bolt energy drinks.
The funding package agreed will enable Villa Drinks to increase employee numbers from 37 to 54 and acquire new machinery to boost capacity and service increasing demand.
The business’ expansion has resulted in it recently securing a contract with a major national supermarket chain to supply its new range of Crystal juices, a ‘one of your five-a -day’ fruit drink.
The ABL financing package includes Lloyds TSB Commercial Finance’s Debtor Protection policy to safeguard against the risk of bad debt.
Owner of Villa Drinks, Malcolm Slatcher, who has 25 years experience in the bottling and soft drink industry, said: “This is an exciting time for us as we have a number of new products to launch and contracts to fulfill. This requires a strong cash flow so we looked for a comprehensive funding package which would provide the capital needed to service the increased demand.
“The ABL facility enables us to release the value of our existing assets to fund the investment required to move forward.
“Also, with Debtor Protection now in place we have a safeguard against bad debt, which gives us peace of mind as we continue growing the business.”
Andrew Bentley, regional manager for Lloyds TSB Commercial Finance said: “Malcolm has pursued a clear strategy to ensure that Villa Drinks has prospered in the downturn and benefitted the local economy by creating valuable new jobs. I look forward to working with the company and providing funding and guidance as it continues to grow.”
The firm was introduced to Andrew by Lloyds TSB Commercial banking, which had been brought in to look at the business’ banking needs and Malcolm was impressed with the Group’s joined-up financing approach.
Lloyds TSB Commercial relationship director David Dick said: “Malcolm approached us with a well-structured business plan which identified untapped demand and a strategy to capitalise on it. We worked with our colleagues in Commercial Finance to provide a tailored funding package, which will closely match the company’s needs as it expands.”
Sunderland City Council has supported Villa Drinks over the years, and was pleased to assist with this expansion.
Janet Snaith, head of business investment at Sunderland City Council said: “Villa Drinks is part of Sunderland’s heritage and we are pleased to be able to work alongside Lloyds TSB on this expansion project, to continue to support such an iconic local brand.”
Notes to editors
Lloyds 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.
Debtor Insurance is arranged by Lloyds TSB Commercial Finance Limited and underwritten by Chartis Insurance Limited.
Lloyds TSB Commercial Finance Limited is an appointed representative of Chartis Insurance UK Limited. (FSA Register number 202628), The Chartis Building, 58 Fenchurch Street, London EC3M 4AB, which is authorised and regulated by the Financial Services Authority.
Pricing for Debtor Insurance is based on a percentage of a business’ turnover, taking into account a range of factors. For more information, please call 0800 587 5180.
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 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. Back to top | More Lloyds TSB stories
